Abraxas Announces Third Party Pipeline Constraints in South Texas.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 due to third party pipeline constraints, the Yoakum Field in South Texas has been shut-in since November 4, 2005. The Yoakum Field produces approximately 3.4 MMcf of natural gas per day, or approximately 16% of the Company's current daily net production. The pipeline constraints stem from capacity issues downstream that ultimately caused increased pipeline pressures upstream, and the gas from the Yoakum Field is currently unable to meet the high-pressure demands of the third party pipeline. "We are currently reviewing every possible alternative, some of which involve negotiations with other operators as well as third parties, to relieve these pipeline constraints. We believe these constraints are a short-term issue that can be relieved with additional compression or by the arrival of seasonal weather, thus increasing demand and reducing pipeline pressures. The loss of this production should not affect our exit rate guidance of 19 - 21 MMcfepd, provided this shut-in production is back on-line by year-end; however, it will affect our overall fourth quarter and full year production figures," commented Bob Watson
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 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 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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