Abraxas Announces Texas Flow Rate

Mon Sep 24, 2012 10:47am EDT

* Reuters is not responsible for the content in this press release.

Abraxas Announces Texas Flow Rate

Abraxas Petroleum Corporation (NASDAQ:AXAS) today provided an operational update.

West Texas – Spires Ranch

Abraxas today announced that the Spires Ranch 89-1H well has been completed and is currently flowing approximately 828 barrels of oil per day and 734 mcf per day of gas on a 30/64 inch choke with 230 pounds of flowing tubing pressure. This horizontal well was drilled to a total depth of approximately 9,850 feet including an approximate 2,800 foot horizontal section. The well was completed open hole with no stimulation. Abraxas owns a 100% interest in the Spires Ranch lease.

Rocky Mountain – North Dakota

Abraxas also announced today that its Jore Federal 2-11-3H well in McKenzie County, North Dakota has been drilled to a total depth of approximately 20,620 feet including an approximate 10,000 foot horizontal lateral. We are currently preparing to run production casing after significant shows of oil and gas were encountered while drilling the lateral. Abraxas owns an approximate 76 percent interest in the Jore Federal Unit.

Comments

“We are extremely encouraged with these well results as they validate our aggressive capital program to develop new oil reserves and production. In West Texas, the Spires well was a step out from our own previous production and indicates a sizeable area of higher pressure reservoir may be located under our 5,800 acre Spires Ranch lease. The Jore well in North Dakota is the third on a three well pad and sets up a mid October frac date for three wells which should be a significant contributor to Q-4 production and cash flow,” commented Bob Watson, Abraxas’ President and CEO.

Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas exploration and production company with operations across the Rocky Mountain, Mid-Continent, Permian Basin and onshore Gulf Coast regions of the United States and in the province of Alberta, Canada.

Safe Harbor for forward-looking statements: 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 crude oil and natural gas. In addition, Abraxas’ future crude oil and natural gas 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.

Abraxas Petroleum Corporation
Geoffrey King, 210-490-4788
Vice President – Chief Financial Officer
gking@abraxaspetroleum.com
www.abraxaspetroleum.com