Abraxas Buys 210 Bakken Acres

Abraxas Buys Bakken Acreage
Abraxas Buys Bakken Acreage

In a show of optimism, Abraxas Petroleum announced that it has purchased additional land in the Bakken region and plans to increase drilling by later in 2015.

Related: Abraxas Reports Best Year on Record

The San Antonio-based company recently bought an interest in 210 acres of property in the Bakken Shale in North Dakota and will be seeking regulatory approval from the NDIC to control the acreage. This will pave the way for the Abraxas to add another 15 Bakken and Three Forks wells to the company’s inventory. Abraxas’ activity in the Williston Basin includes the Jore 5H, Jore 6H, Jore 7H and Jore 8H wells in McKenzie County, where the company hopes to begin fracturing in late May.

Bob Watson, President and CEO of Abraxas, commented“The acquisition of additional Bakken interests directly plays into our strategy of acquiring interests at a reasonable cost that will provide future development in our core areas. Each operated unit we are able to successfully acquire adds approximately two years of inventory for our Company owned drilling rig and substantial potential reserves. We will continue to search for similar opportunities that will allow us to further consolidate our interests in our core regions in the currently distressed environment.

Abraxas released 2015 first quarter production numbers showing an average of approximately 6,590 boepd (4,475 barrels of oil per day, 8,871 mcf of natural gas per day, 637 barrels of NGLs per day). The company reports that gas processing constraints in the Bakken negatively impacted production volumes.

Crude prices increased to $67 a barrel today, reaching a 2015 high after prices plummetted in the fall.

Read more at abraxaspetroleum.com

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Abraxas Petroleum Releases Q4 Results

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Abraxas Petroleum announced a record 2014 during its earnings call on March 4th and reported on their 2015 spending plan.

2014 Highlights include oil production that averaged 5,720 Boepd and $63.3 million in net income. Abraxas’ fourth quarter net income was $30.1 million, which is up over the same period in 2013 when they reported $27.0 million. The company’s adjusted net income for Q4  was $6.1 million, compared to $1.4 million in 2013.

Related: EOG Reduces 2015 Capex 40 Percent

Abraxas plans to cut its capital spending to $54 million for 2015, compared with $193 million in 2014. The company further expects a 26% growth in production to 7100 barrels a day as it completes the nine wells it drilled during 2014.

Bob Watson, Abraxas’ President and CEO commented, “After a tremendous 2014 for Abraxas, we now enter a very tumultuous 2015 from a commodity price perspective. We remain focused on preserving our abundant liquidity and strong balance sheet, which we endeavor to use to our advantage in a distressed environment. We are also blessed with an attractive asset base that presents numerous opportunities to expand our capital program should commodity prices and service costs dictate. We look forward to updating the market on the results of some of these efforts in the near future.

Abraxas’ operations in North Dakota spans has roughly 5,000 net acres in the Bakken, mostly in McKenzie County. The company announced that it recently drilled four wells to about 21,000 feet each on their Jore Federal West pad in record time and at a low cost. The company will defer completion on these wells as they wait for better weather and for production costs to decrease.

Find out more at abraxaspetroleum.com

Read the full call transcript at seekingalpha.com

U.S. Energy Corp. and Abraxas Petroleum Provide Bakken Operations Update

U.S. Energy Corp. Rig
U.S. Energy Corp. Rig

U.S. Energy Corp. and Abraxas Petroleum released operational updates this week in the Bakken. The two companies interests are not connected.

U.S. Energy Corp. and Abraxas Petroleum are also active in the Eagle Ford Shale play in South Texas.

Read moreAbraxas Petroleum Operations Update Reveals Strong Initial Production (IP) Rate for McMullen County Well

Read more: U.S. Energy Corp Provides Operations Update for Buda Limestone Wells

Abraxas Petroleum Williston Basin Operations Update

Abraxas is active in McKenzie County, ND. The company's Jore 1H, 2H and 4H are scheduled for fracking, following the completion of an Eagle Ford well. Abraxas owns a working interest of 76% in these wells.

On Abraxas' first Middle Bakken downspacing test, Raven Rig #1 successfully drilled and cased the surface and intermediate sections of the Ravin 6H and Ravin 7H. The company is now drilling the intermediate sections of the Ravin 5H, which will be followed by the intermediate section of the Ravin 4H. Abraxas owns a working interest of 51% in its' Ravin West pads.

Bob Watson, CEO of Abraxas, said in a company statement,”in the Bakken, weather has abated and we plan to be on location in the coming weeks to frac our three well Jore pad. Drilling continues to run quite smoothly on the Ravin pad. Success on this initial downspacing test obviously carries with it significant reserve and inventory implications for the company.

U.S. Energy Corp. Williston Basin Operations Update

U.S. Energy Corp. has interests across 84,480 gross (3,225 net) acres in Williams, McKenzie and Mountrail Counties, North Dakota. At the end of 2013, the company had participation in 101 gross (10.7 net) Bakken and Three Forks formation producing wells. Due primarily to weather-related issues in North Dakota, the company's Williston Basin production decreased by ~24% during the first two months of 2014 to an average of ~ 625 boe/d as compared to 817 boe/d in the fourth-quarter of 2013.

Read more at abraxaspetroleum.com

Read more at usnrg.com

Abraxas Will Run One Bakken Rig and Spend $54 Million in 2014

Abraxas Petroleum will run one rig in and spend $53.8 million in the Bakken in 2014. The company plans to drill 7.2 net wells and complete 6.4 net wells.

Abraxas enters 2014 with a pristine balance sheet and far more profitable and focused asset base. We continue to identify additional opportunities in the Bakken and Eagle Ford and will announce the results of these efforts when it is prudent. We look forward to what promises to be an active 2014 Bakken and Eagle Ford drilling program.
— Bob Watson, CEO

Abraxas Nears Completion On Bakken Pad Utilizing A Zipper Frack

Abraxas Petroleum Bakken Acreage Map
Abraxas Petroleum Bakken Acreage Map

Abraxas Petroleum has completed 109 of 122 frack stages in four wells on its Lillibridge unit in McKenzie County.

Production data will be released after flowback begins and production measurements can be made.

A well pad just west of this unit is currently being drilled and will be completed later in the summer.

Bob Watson, CEO, commented:

In numerous presentations over the last several months we spoke of an anticipated step change in production. As we head into the third quarter of 2013 we are poised to realize that production growth via our four new Bakken wells and upcoming Eagle Ford completions...... In the Bakken, our Lillibridge completions are running remarkably smoothly and our rig is working efficiently.

Read the full press release at abraxaspetroleum.com