Abraxas

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.

Lower 48-focused independent Abraxas Petroleum Corp. late Monday revised its 2019 capital budget to $95 million, down from previous guidance of $108 million, based on the “current commodity price environment and the company’s focus on capital efficiency.” However, there are plans to bolt on more acreage in the Permian Basin.

Abraxas Petroleum Corp. said two wells in the Permian Basin targeting the Wolfcamp formation are outperforming expectations, and four more wells are planned before the producer moves forward to test 660-foot spacing on a four-well pad.

Abraxas Petroleum Corp. has signed an agreement to purchase more than 2,000 net acres in West Texas with existing production for $22.2 million, bolting on to its adjacent acreage in the Delaware sub-basin and increasing its position in the play by more than one-third.

Abraxas Petroleum Corp. said it expects production to increase dramatically later this year once six wells are completed in the coming weeks. Meanwhile, the company is in negotiations for bolt-on acquisitions in the plays were it is active — the Delaware sub-basin, Williston Basin and the Eagle Ford Shale.

With a focus on the Bakken in North Dakota and Texas properties, San Antonio-based Abraxas Petroleum Corp. is starting its exit from the Powder River Basin (PRB) in Wyoming and Montana as it closed an $11.1 million sale of PRB assets last Tuesday.

Abraxas Petroleum Corp. and Enerplus Corp. separately reported production growth in the Bakken Shale during the third quarter.

San Antonio, TX-based Abraxas Petroleum Corp. said it plans to sell acreage in West Texas to help pay down its debt and that it expects to cut its borrowing base by one-fifth at the end of the month.

Copano Energy LLC said it has struck long-term contracts with several Eagle Ford Shale producers, including Abraxas Petroleum Corp., Paloma Resources, Petrohawk Energy Corp., Pioneer Natural Resources, Reliance Eagleford Upstream Holding LP, Newpek LLC and Riley Exploration. It has also expanded its contract with GeoSouthern Resources to include a larger acreage dedication. Copano will provide gathering, compression, processing and fractionation services for the producers in portions of DeWitt, Karnes and Live Oak counties, TX, under the contracts, which are primarily fee-based. Copano has secured firm producer commitments for aggregate production of up to 120,000 MMBtu/d and additional commitments for production from approximately 135,000 gross acres in the Eagle Ford. Copano also said it will extend its DK Pipeline by 58 miles through Lavaca County, TX, to connect with the DK Pipeline system into its Houston Central Complex.