Abraxas Announces 2006 Capital Expenditure Budget and Guidance.SAN ANTONIO San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. -- Abraxas Petroleum Corporation (AMEX AMEX See: American Stock Exchange :ABP 1. (networking) ABP - Alternating bit protocol. 2. ABP - Microsoft Address Book Provider. ) today announced a 2006 capital expenditure budget of $40 million and issued guidance for the year. Individual projects that comprise the $40 million capital expenditure budget will be selected from the Company's large inventory of projects based on availability of drilling rigs and service equipment. Every project in inventory is located on existing leasehold in Texas and Wyoming and considered development in nature, with the vast majority being 100% owned and operated by the Company. Abraxas plans to fund the 2006 capital expenditure budget out of cash flow and availability under its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility.
Abraxas further provided the following operational and financial
guidance for 2006:
Production
Annual 7.5 - 8.5 Bcfe
Exit Rate (per day) 22 - 24 MMcfe
Differentials off NYMEX
Oil $ 1.00
Gas 5%
Production Taxes 10% of revenue
Direct Lease Operating Expenses (LOE) $ 1.10 per Mcfe
General & Administrative (G&A) $ 0.55 per Mcfe
Interest $ 2.00 per Mcfe
Depreciation, Depletion & Amortization (D/D/A) $ 1.30 per Mcfe
(The above guidance does not include non-cash and extraordinary items,
including, but not limited to, stock-based compensation, stock option
expensing or bonuses.)
"Even though we remain in a tight environment in terms of available rigs and related services, we are optimistic about our ability to spend our 2006 capital expenditure budget of $40 million, a 25% increase over the 2005 budget. We will begin the year utilizing our own workover rigs for re-entry RE-ENTRY, estates. The resuming or retaking possession of land which the party lately had. 2. Ground rent deeds and leases frequently contain a clause authorizing the landlord to reenter on the non-payment of rent, or the breach of some covenant, when the and re-completion projects, primarily in the Delaware Basin The Delaware Basin in West Texas and southern New Mexico is famous for holding large oil fields and for exposing a fossilized reef. Guadalupe Mountains National Park and Carlsbad Caverns National Park protect part of the basin. of West Texas, while we secure larger rigs for grass roots grass roots pl.n. (used with a sing. or pl. verb) 1. People or society at a local level rather than at the center of major political activity. Often used with the. 2. The groundwork or source of something. and deeper projects. As the selected projects are successfully completed and placed on-line, we anticipate a growing production profile in line with our guidance," commented Bob Watson, President and 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. . Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploitation and production company with operations in Texas and Wyoming. 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 statements: Statements in this release looking forward in time involve known and unknown risks and uncertainties, which may cause Abraxas' 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 Abraxas for natural gas and crude oil. In addition, Abraxas' future natural gas and crude oil production is highly dependent upon Abraxas' level of success in acquiring or finding additional reserves. Further, Abraxas operates in an industry sector where the value of securities is highly volatile and may be influenced by economic and other factors beyond Abraxas' control. In the context of forward-looking information provided for in this release, reference is made to the discussion of risk factors detailed in Abraxas' filings with the Securities and Exchange Commission during the past 12 months. |
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