Abraxas Announces Preliminary 2007 Capital Expenditure Budget.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 preliminary 2007 capital expenditure budget of $27 to 44 million. The preliminary budget includes roughly 20 to 30 projects, which will be selected from the Company's expansive inventory of projects on its existing leasehold and may include the following - the listed projects are subject to change based on rig availability and drilling results: West Texas * Devonian horizontal 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 (14,000') in the Oates SW Field of Pecos County; * Woodford Shale horizontal re-entry (13,500') in the Oates SW Field of Pecos County; * Cherry/Bell Canyon (7,000') in-fill drilling in Ward County; * Spraberry (9,000') in-fill drilling in Midland County Midland County is the name of several counties in the United States:
* Clearfork (3,500') in-fill drilling in Mitchell and Scurry Counties; and * Strawn Reef (6,000') in-fill drilling in Coke County. South Texas * Several exploratory wells (9,000'-12,000') targeting the Wilcox on internally generated prospects in Bee and Karnes Counties. Wyoming * Mowry horizontal well (8,500') in the Brooks Draw Field of Converse and Niobrara Counties. The ultimate capital expenditures will depend on a number of factors, including but not limited to commodity prices, rig availability, service costs, and general market conditions. The Company plans to issue guidance for 2007 after necessary drilling contracts have been secured and consequently, has a better handle on the timing of certain projects. "Our 2007 budget was partly designed to improve our reserve ratio through the conversion of proved undeveloped reserves (PUD PUD abbr. peptic ulcer disease Peptic ulcer disease (PUD) A stomach disorder marked by corrosion of the stomach lining due to the acid in the digestive juices. ), as well as probable / possible reserves, to the category of proved developed reserves (PD). Our goal is to increase the ratio of proved developed reserves to total proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. by at least 10%; we feel that such an improvement in our PD ratio would greatly benefit Abraxas in the public markets and consequently, benefit all of our shareholders. At present, approximately 50% of our budget consists of PUD projects while another 20% represent probable and possible projects. We will begin the year by keeping our company-owned workover rigs busy on several re-entry / re-completion projects in West Texas, while we secure larger drilling 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," 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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