Abraxas Petroleum Corporation Closes Drilling Agreement With EOG Resources Inc.Business Editors & Energy Writers SAN ANTONIO--(BUSINESS WIRE)--Sept. 6, 2000 Abraxas Petroleum Corporation (AMEX AMEX See: American Stock Exchange :ABP 1. (networking) ABP - Alternating bit protocol. 2. ABP - Microsoft Address Book Provider. ) closed its previously announced agreement 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 paid Abraxas $2.5 million and will 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. The first well is currently drilling with a total depth of 8600' and EOG will spud a second well before year end. Abraxas retains 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 entered into an area of mutual interest covering the Montoya formation in this area. The wells will offset several wells drilled by ExxonMobil and BP Amoco that have tested at rates of 8 to 17 MMcfpd per well. 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 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. |
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