Abraxas Petroleum Corporation Announces Drilling Joint Venture With EOG Resources Inc.Business Editors & Energy Writers SAN ANTONIO--(BUSINESS WIRE)--Aug. 7, 2000 Abraxas Petroleum Corporation (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :AXAS) announced today it has entered into a letter of intent for a joint venture with EOG Resources EOG Resources NYSE: EOG is a Fortune 600 company based in Houston, Texas. This company is one of the largest independent oil and natural gas companies in the United States. History 1999
EOG abbr. electro-oculography EOG electro-oculogram; electro-olfactogram. EOG Electrooculogram, see there ) to develop its Montoya play in west Texas. EOG Resources Inc. will pay Abraxas $2.5 million to earn 75% of Abraxas' working interest in the Montoya formation covering approximately 11,000 net acres in Ward and Reeves Counties. EOG will operate and pay 100% of the costs of up to five horizontal wells in the Montoya formation and will spud two of the wells before year end. Abraxas will retain a carried 25% working interest in four of the wells and will have an override and a 30% working interest after payout in the fifth well. The two companies will enter into an AMI covering the Montoya formation in this area. The wells will offset several wells drilled by ExxonMobil and ARCO that have tested at rates of 8 to 17 mmcfpd per well. Abraxas' 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. Bob Watson said, "This joint venture validates the value of one of several horizontal exploitation projects none of which are reflected in our 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. . We are proud to have such a quality partner as EOG. The savings in capital expenditures to the Company of over $15 million will allow us to more aggressively pursue other horizontal exploitation ventures while maintaining prudent liquidity." The joint venture is subject to final documentation and due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and is expected to close by the end of August. 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 of western Texas, western Canada 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 statement 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 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion