Lower 48 independent Abraxas Petroleum Corp. said it has received notice from Nasdaq that it does not meet continued listing standards, which require a minimum average closing price of $1.00/share over 30 consecutive trading days.

The San Antonio-based explorer works in the Permian Basin, South Texas and in the Rocky Mountains. To regain its Nasdaq listing, management said it intends to work on ways to meet the minimum average share price requirement. Abraxas was trading at 50 cents/share at market’s close on Wednesday.

During the second quarter, production averaged 9,572 boe/d, which was 12% lower than in 1Q2019. Net income was $11.7 million (7 cents/share), compared with a year-ago loss of $10.5 million (minus 6 cents). Revenue came in at $34.8 million versus $30.9 million.

During the second quarter management acknowledged it had held “multiple discussions” with Dallas-based investor Saltstone Capital Management LLC, which sent a letter to the Abraxas board pressing for immediate changes to unlock shareholder value.

In its letter, Saltstone unveiled a plan “designed to reverse decades of devastating value destruction by the current management team and board of directors.”

No decision was made during the quarter, according to Abraxas management, “and there can be no assurance that this ongoing assessment process will result in any transaction or transactions.”

Nasdaq allows 180 days following the notice to regain compliance for continued listing. Abraxas will continue to trade on Nasdaq subject to compliance.

Earlier this year, Abraxas cut its 2019 capital spending to $85 million from $108 million citing the “current commodity price environment and the company’s focus on capital efficiency.” Spending this year is down sharply from 2018 totals of $171 million.