Abraxas Announces Expanded Capital Spending Budget for 2005 and Provides Operational Update.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 that the Board of Directors approved an expanded capital expenditure budget of $32 million for 2005 and provided an operational update. E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]The $10 million increase over the initial capital expenditure budget of $22 million will be allocated predominantly to Wyoming and the Oates SW Field area in West Texas and will be funded out of cash flow and availability under our credit facility. E[acute accent]Recently announced operational results have positively impacted our total net production, which currently exceeds 21.5 MMcfepd and represents a 41% increase over 2nd quarter average. E[acute accent]In the Oates SW Field area, the La Escalera #2 is cleaning up after a frac treatment, following delays in obtaining service equipment. In addition, 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 operations have commenced on an initial Woodford test on the recently acquired Hudgins Ranch. E[acute accent]In Brooks Draw, Wyoming, the Red Tail Hawk #1 reached a total depth of 9,130' and production casing was set after encountering encouraging oil shows in multiple zones. The Prairie Falcon prairie falcon n. A large, square-headed falcon (Falco mexicanus) of western North America, having dark brown back feathers with pale edges and faintly spotted whitish underparts. #2 and the Red Tail Hawk #1 currently await completion equipment. The Bald Eagle bald eagle Species of sea eagle (Haliaeetus leucocephalus) that occurs inland along rivers and large lakes. Strikingly handsome, it is the only eagle native solely to North America, and it has been the U.S. national bird since 1782. The adult, about 40 in. #1 is drilling below 5,800'. Abraxas owns a 100% working interest in all five of the above-mentioned wells. E[acute accent]"We are extremely pleased that our current net production exceeds our exit rate guidance for the year, and we have several wells currently awaiting completion. Even though we continue to find ourselves in a tightening environment in terms of available rigs and related services, we are optimistic about our ability to achieve our expanded $32 million capital program. As these wells are successfully completed, we anticipate a continually growing production profile throughout 2005 and into 2006," 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. . E[acute accent]In connection with the appointment of Paul A. Powell, Jr. to Abraxas' Board of Directors, 45,000 options have been awarded to Mr. Powell at a price of $4.59 per share. E[acute accent]Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploitation and production company with operations in Texas and Wyoming. E[acute accent]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 crude oil and natural gas. In addition, Abraxas' future crude oil and natural gas 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' filing with the Securities and Exchange Commission during the past 12 months. |
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