Back to the Basics...
Increase Shareholder Value by...
South Texas – Gulf Coast Basin – DeWitt, Goliad, Lavaca, Live Oak & San Patricio Counties
Project Areas:
IRA
Delaware
Atoka-Wolfcamp / Mississippian / |
Devonian / Montoya / Ellenburger
Cherry Canyon
Oates SW
| Wolfcamp / Woodford / Devonian | |
(1) | as of 12/31/05 | |
(2) | Q2 actual | |
(3) | as of 12/31/05, includes mineral interest |
| | | | |
Map of Texas highlighting Pecos County in West Texas
38 sq. miles of 3-D seismic
~15,000 acres
Focus – Conventional Reservoir
DEVONIAN
4 wells producing – 1 awaiting completion
Q4 2006 – re-enter 2 wellbores & drill horizontally
Hudgins 34-2H: Devonian - <1.0 MMcfepd
La Escalera 1AH: Devonian - > 8.0 MMcfepd
Hudgins 37-1H: Devonian – on-line – awaiting fracture stimulation
Elsinore Cattle 56: Q4 2006 Devonian re-entry candidate - ~0.2 MMcfepd
Manzanita: Q4 2006 Devonian re-entry candidate
Secondary – Conventional / Resource Plays
WOLFCAMP & WOODFORD
Wolfcamp – 1 well producing – awaiting completion
Woodford – 1 well producing
Hudgins 11-1: Woodford – producing small amount of dry gas
La Escalera 5-1: Lower Wolfcamp – on-line – awaiting fracture stimulation
Lease map of Oates SW Field area with well locations, 3-D outline, current activity and wellbores available for re-entry depicted
Slide 11: | Resource Play... |
Map of Texas highlighting Culberson, Reeves, Pecos and Ward Counties in West Texas with well locations and acreage position depicted
Delaware Basin Shale Players:
(ABP), COP, CHK, CRZO, CWEI, DVN, ECA, EOG, FST, KWK, PPP, RRC, SWN, XTO, Reliance and Petro-Hunt
EOG (building pipeline after positive test)
BR (flowing gas)
Petro-Hunt (flowing gas)
ABP: Nine Mile Draw Field
2,350 net acres HBP
ABP: Oates SW Field
~15,000 acres
(gained valuable reservoir knowledge & producing small amount of dry gas)
ABP: ROC Complex
6,210 net acres HBP
Conventional Reservoirs
Slide 12: | Resource Play Comparison... |
Map of Texas highlighting Delaware Basin Shale & Ft. Worth Barnett Shale
Delaware Basin Shale Players:
(ABP), COP, CHK, CRZO, CWEI, DVN, ECA, EOG, FST, KWK, PPP, RRC, SWN, XTO, Reliance and Petro-Hunt
Barnett Shale Players:
BEXP, COP, CHK, CRZO, DNR, DVN, ECA, EOG, IFNY, KWK, PPPL, RRC, XTO
Sources:
1 Natexis Bleichroeder Inc.
2 CHK estimates
3 ABP estimates
4 Pickering Energy Partners
Map of Texas highlighting certain counties in South Texas
46 wells (93% WI) (1)
30.2 Bcfe (Proved) (1)
39.4 Bcfe (3P) (1)
7.0 MMcfepd (2)
1,200 NUA (1)
33 projects (3P) (1)
4 incremental projects (1)
Average depth: > 11,000’
Project Areas:
Edwards
Wilcox – 2 wells planned for 2006 (1H-2007)
1st well – 1.0 MMcfepd
2nd well – leasing continues
Wilcox
Wilcox / Reklaw / Mackhank |
Portilla
| Frio / Vicksburg |
(1) | as of 12/31/05 | |
(2) | Q2 actual | |
| | | |
Map of Wyoming highlighting certain counties in east central Wyoming
10 wells (100% WI) (1)
1.5 Bcfe (Proved) (1)
9.9 Bcfe (3P) (1)
0.4 MMcfepd (2)
45,800 NUA (1)
29 projects (3P) (1)
60 incremental projects (1)
Average depth: 9,000’
Project Area:
Brooks Draw
Turner / Mowry / Muddy
4 wells drilled in 2005 – 8 commingled zones – IP: 80-100 barrels of oil per day
1 addt’l zone to be commingled
4 addt’l zones to be completed
AEZ/BEXP Horizontal Mowry Shale Test ~15 miles to the SE of Brooks Draw
Reached TD & set casing – flow tests & artificial fracture procedures are planned
(1) | as of 12/31/05 |
(2) | Q2 actual | |
Slide 15: | Increase Shareholder Value... |
Line chart of ABP share price and NYMEX gas since January 2005
Continue to improve balance sheet
Maintain financial flexibility and liquidity
Prioritize large opportunity set of projects
Slide 16: | ABP Undervalued... |
...compared to NAV
Bar chart of NAV/share from $3 – Sky’s the Limit
?? Bcfe – incremental (highest risk)
172 Bcfe (1) – possible (higher risk) |
significant un-booked potential
27 Bcfe (1) – probable (low-risk)
105 Bcfe (1) – proved
(1) | as of 12/31/05 | |
(2) | PV10 ranges from 12.5% discount to 12.5% increase to 12/31/05 SEC PV10 |
Slide 17: | 2006 Guidance... |
Production
Annual (Bcfe) | 7.5 – 8.5 |
Exit Rate (MMcfe/d) | 22 - 24 | |
| | | |
Price Differentials off NYMEX
| Gas (%/Mcf) | 15% | |
| Oil ($/Bbl) | 2.00 | |
Production Taxes (% of Revenue) | 10% | |
Direct Lease Operating Expenses ($/Mcfe) | 1.10 | |
G&A ($/Mcfe) | 0.55 | |
Interest ($/Mcfe) | 2.00 | |
D/D/A ($/Mcfe) | 1.80 | |
Capital Expenditures | ($MM) | 40.0* |
| | | | | | |
* or 1x cash flow, whichever is lower
Guidance does not include non-cash and extraordinary items
Hedge position: 10,000 MMbtu per day through March 2007 with $5.00-$6.00 floor
Niche exploitation and production company
High quality assets with substantial upside
Goals:
• | Increase Shareholder Value |
• | Drill Bit Growth | |
| | | |
Slide 19: | www.abraxaspetroleum.com | |
Picture: | Hudgins Ranch, Delaware Basin, West Texas |
P:\BARBARA\INVESTOR RELATIONS\Presentations\2006\8K_ IPAA SF 2006 Oct.doc
