Abraxas' Board Approves 2004 Capital-Spending Budget, Operational Update Provided.Energy Editors/Business Editors SAN ANTONIO--(BUSINESS WIRE)--Feb. 2, 2004 Abraxas Petroleum Corporation ("Abraxas") (AMEX AMEX See: American Stock Exchange :ABP 1. (networking) ABP - Alternating bit protocol. 2. ABP - Microsoft Address Book Provider. ) announced its 2004 Capital-Spending Budget as well as provided an update for certain operational activities: -- A capital-spending budget for 2004 of $10 million. Of this amount, $5.0 million is allocated to U.S. projects and $5.0 million is related to projects associated with the Company's Canadian subsidiary, Grey Wolf Exploration. The Company plans to participate in the drilling or putting on production of 17 gross (13 net) wells, of which 11 gross (11 net) will be operated. -- Continuing development activities in Q4 of 2003 increased daily net production rates to over 24.1 MMcfepd at the end of the year, an increase of 26% from the beginning of 2003. During the fourth quarter, the Company put online, 4 new wells in west Texas and 4 new wells in Canada. Average Q4 production of 21.6 MMcfepd was 10% higher than Q3 2003. -- As part of its 2004 Capital-Spending Budget, the Company is currently drilling 1 gross (1 net) operated well in west Texas, 1 gross (1 net) operated well in Wyoming and 3 gross (0.75 net) non-operated wells in Canada. The balance of the activity for 2004 will be in these areas. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Bob Watson
n. The land bordering a body of water; a beach. v. strand·ed, strand·ing, strands v.tr. 1. To drive or run ashore or aground. 2. Canadian gas to the marketplace, is reflected in our increasing daily production rates. Following the sale of our Canadian producing assets in early 2003, our goal has been to continue development of our retained properties and we think the 26% increase in production during 2003 demonstrates why we are excited about the quality of our asset base. The Company is continuing to explore ways to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the current strong commodity price environment to improve our balance sheet, namely the delevering process that continued with the early 2003 property sales. Our announced capital-spending budget of $10 million is limited by our current debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay agreements. If we are successful in amending those agreements, the Company could comfortably exceed these spending limits out of cash flow with our current inventory of development projects." Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploitation and production company. The Company operates in Texas, Wyoming and western Canada
Western Canada, commonly referred to as the West . Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : Statements in this release looking forward in time involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to be materially different from any future performance suggested in this release. Such factors may include, but may not be necessarily limited to, changes in the prices received by the Company for crude oil and natural gas. In addition, the Company's future crude oil and natural gas production is highly dependent upon the Company's level of success in acquiring or finding additional reserves. Further, the Company operates in an industry sector where the value of securities is highly volatile and may be influenced by economic and other factors beyond the Company's control. In the context of forward-looking information provided for in this release, reference is made to the discussion of risk factors detailed in the Company's filing with the Securities and Exchange Commission during the past 12 months. |
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