Abraxas Petroleum Corporation Announces 2000 Capital Spending Budget.SAN ANTONIO--(BUSINESS WIRE)--Dec. 1, 1999-- Abraxas A`brax´as n. 1. A mystical word used as a charm and engraved on gems among the ancients; also, a gem stone thus engraved. Petroleum Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AXAS) announced today that its Board of Directors has approved a capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. budget of approximately $39 million for 2000. This compares to an expected $26 million of spending in 1999, exclusive of acquisitions and divestitures. The anticipated 2000 spending is composed of $26.5 million related to 77 projects in the U.S. and $12.5 million for 114 projects on Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. properties. "The focus of these projects continues to be the development of our core operating areas of south and west Texas, Wyoming and western Canada
Western Canada, commonly referred to as the West as well as a return to Kansas, a traditional operating area for Abraxas. Utilizing proven horizontal drilling a drilling machine having a horizontal drill spindle. See also: Horizontal techniques, the emphasis will be on low-risk, near-term returns," stated Robert L.G. Watson, Chief Executive Officer and President. "The expected savings in interest costs related to our recently announced exchange offer, coupled with cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses and proceeds from non-core asset divestitures next year, should allow us to fund this aggressive program. Abraxas will operate the majority of these projects, affording us substantial discretion over the timing and expenditures related to these activities," commented Watson. Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploration and production company that also processes natural gas. It operates primarily along the Texas Gulf Coast, in the Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. of western Texas, western Canada and southwestern Wyoming. 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 securities values are 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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