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Introduction

Abraxas Petroleum Corporation

Abraxas Petroleum Corporation belongs to the independent gas and oil industry which engages itself in exploitation, acquisition, production and development of crude and natural gas in Canada and United States. The company is based in San Antonio, Texas.  It had become a public limited company in 1991. The shares of the company are traded in NASDAQ Stock Exchange under the symbol of “AXAS” (“Profile”). The options of the company are traded on Chicago Board Options Exchange (CBOE) and Pacific Exchange (PCX). It concentrates on increasing the shareholder’s value and also, maintains the financial liquidity and flexibility at the same time. The company has the opinion that growth is achieved through drill-bit (“Balance Sheet”).  It has acquired several legacy assets over the years and has made huge contribution stated below:

  • Safeguarding the interest of owners
  • Controlling the operational and infrastructural works
  • High production capacity from each well
  • Acquiring larger areas for exploitation
  • Improving the company’s expertise level by recuperating the horizontal drilling

The company not only concentrates on adding its asset base, but focuses on acquiring leases that would fit strategically in the current portfolio. Abraxas have targeted the conventional reservoirs and emerging resources that play an important role in the primary areas in, Permian Basin, Powder River Basin, Eagle Ford Shale/Gulf Coast, Williston Basin and Canada (“Company Profile”).

Properties and commodities of Abraxas Petroleum Corporation

It is identified that in March 31, 2011, the company had an estimated net reserve of 29.0 million barrels of oil equivalent (MMBoe). It included the following commodities:

  • Reserve attribute of 34.7% equity interest in proved reserves of Blue Eagle
  • 53% of the reserve are proved to be developed MMBoe
  • 54% were oil and natural gas liquids (NGL’s)
  • 94% by PV-10

The daily net production of the company during the year-end, December 31, 2011, was recorded to be 3,484 barrels of oil equivalent per day. These included 45% of oil or liquids. However, at the end of March 12, 2013, the company had acquired five gross non-operated wells and eight gross operated wells in process of completion after drilling (“Crude Oil and Natural Gas”).
The properties that are owned by the company are as follows:

1) The properties of the company in the Rocky Mountain region are situated in Montana in the Green River and Williston Basin of North Dakota, Powder River and Unit Basins of Utah and Wyoming. The wells are recorded to produce gas and oil from a range of reservoirs which includes Turner, Niobrara, Bakken and Three Forks formations.

2) The properties owned by the company in the Mid-Continent region are located in Arkoma Basin. It produces gas from Hartshorne coals which are at 3,000 feet deep. The properties in Permian Basin region are located in the two sub-basins: the Eastern Shelf and Delaware Basin. The wells in Delaware Basin are positioned in Reeves, Pecos and Texas. It also produces gas and oil through multiple pile formations from Bell Canyon which are at 5,000 feet deep. The wells in Eastern Shelf are situated in Scurry, Midland, Coke, Nolan counties and Mitchell. It produces gas from Strawn Reef formation which is situated at a depth of 5,000 to 7,500 feet and produces oil from the shallower Clearfork formation at a depth of 2,300 to 3,300 feet (“Company Description”)

3) The properties in the onshore Gulf Coast region are situated all along the Edwards Trend in Lavaca and DeWitt counties. The wells in Edwards Trend produce gas from its formation which is at the depth of 14,000 feet and also, in the Portilla field. The wells produce gas and oil from Frio sands and the deep Vicksburg which is at a depth of 7,000 to 9,000 feet.

4) The properties in province of Canada and Alberta are situated in Nordegg/Tomahawk, Central Alberta and in the Pekisko fairway and also, in Duvernay Shale in the Central Alberta. In 2012, in Williston Basin, the company had completed drilling the first multi-well pad by employing the company’s drilling rig. The Jore Federal 02-11 3H was the first single well pad that was completed by the company and had drawn huge sales in the year 2012. The company had owned 76% working interest in Jore Federal 02-11 3H. There are two additional wells on the pad, Ravin 26-35 3H and Ravin 26-35 2H. This has drawn huge sales in February 2013 (“Crude Oil and Natural Gas”).

5) The company owned the Lillibridge East pad in 2012 to start their four well drilling program. The company has drilled laterally in Lillibridge 20-17 4H. It had owned 34% working interest in all the four wells in Lillibridge East pad.

6) In WyCross of McMullen County, Texas, the company has drilled and completed two wells in the Eagle Ford Shale in the year 2012. In 2013, it has also completed drilling two additional wells. The sixth well of the company at WyCross, which is named as Mustang 3H, is under construction. It has about 18.75% working interest in Mustang 3H. The company has also planned to complete the seventh well in WyCross, the Mustang 2H, in which the company will have 18.75% working interest.

7) The company has anticipated maintaining a rig program in WyCross throughout 2013. In Ward County, Texas, Abraxas has cased and drilled two shallow Yates wells, Wilkes No.1 and Wilkes No.2. Canada – Duvernay Shale.

8) In Eastern Shale Basin of Alberta Canada, it had entered into an arrangement independently since it had the opportunity to earn 22,000 acres of land which targeted the Duvernay Shale and satisfied a range of drilling commitments.

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