Abraxas Provides Operational Update
Abraxas Petroleum Corporation (NASDAQ: AXAS) today provided an operational update.
Rocky Mountain – North Dakota
The refurbishment of the Company owned drilling rig has been completed and is currently rigging up in McKenzie County, North Dakota where it is scheduled to spud its first well, the Ravin 26-35 3H, a middle Bakken horizontal well, later this week. Abraxas owns an approximate 59% working interest in this well, as well as in the Ravin 26-35 2H, which will be drilled concurrently from the same multi-well pad site.
Rocky Mountain – Wyoming
In Campbell County, Wyoming, the Hedgehog State 16-2H, a horizontal well targeting the Turner formation, was recently completed with a 17-stage fracture stimulation. While flowing back frac fluid, production from the well was as high as 340 Bopd and 6.9 MMcfpd of high BTU gas on a 20/64-inch choke. The well is currently shut-in until it is connected to a nearby pipeline with access to a processing plant which should occur within the next several weeks. Including the NGL content of the gas, the current realized price of the combined gas and NGL stream is in excess of $5.00 per Mcf. Abraxas owns a 100% working interest in this well.
South Texas – Eagle Ford
Abraxas currently owns an approximate 34.7% equity interest in the Blue Eagle joint venture between Abraxas and Rock Oil Company, LLC. In McMullen County, Texas, the Cobra 1H, a horizontal well that is part of the Blue Eagle joint venture, was recently completed in the Eagle Ford with a 15-stage fracture stimulation. For the past 25 days, the well has averaged 800 Bopd and 480 Mcfpd while recovering load fluid. The well is currently flowing on a 22/64-inch choke at approximately 1,050 Bopd and 700 Mcfpd. Blue Eagle owns a 100% working interest in this well and has retained Strategic Energy Advisors, LLC to assist in the sale of Blue Eagle's Eagle Ford holdings.
Canada – Pekisko
In Alberta, Canada, the pipeline hook-up for three wells is complete and tested. Production recently commenced from one well and is expected to commence within a matter of days on the other two wells. Two of the wells still await stimulation as the completions have been delayed until after Spring break-up. Canadian Abraxas owns a 100% working interest in each of these wells which targeted the Pekisko formation.
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