Exhibit 99.1
8-K Robert L.G. Watson will be presenting to multiple money/fund managers in New York and Connecticut, November 1 - 2, 2006
Slide 1: | Abraxas Petroleum Corporation |
East Coast Road Show – November, 2006
The information presented herein may contain predictions, estimates and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, the need to develop and replace reserves, environmental risks, competition, government regulation and the ability of the Company to meet its stated business goals.
Picture: | Pencil drawing of a drilling rig in an oil field |
Slide 2: | Back to the Basics... |
Abraxas Petroleum Corporation
• | AMEX: ABP |
| |||||||
| • | Market capitalization ~ $165 million |
| ||||||
| • | Enterprise value ~ $290 million |
| ||||||
• | Options: CBOE and PCX |
| |||||||
• | Fully diluted shares outstanding – 44.1 million | ||||||||
• | Ownership: ~13% insider |
| |||||||
~28% institutional
• | Average trading volume (3 mos): ~ 250,000 shares per day |
Slide 3: | Why Abraxas... |
Natural gas (> 80%)
• | Operations in Texas and Wyoming |
| |
• | > 10 year inventory of projects on existing leasehold | ||
• | Proved RLI: > 17 years |
| |
Quality assets
• | High ownership interests (79% WI) | ||||
• | Operational control (95%) |
| |||
• | High producing rates per well |
| |||
• | Large acreage positions |
| |||
• | Substantial upside |
| |||
Bar & line chart from 1977 through 2005 detailing long-term debt, market cap and proved reserves at December 31st of each year
Slide 4: | Goals... |
Back to the Basics...
Increase Shareholder Value by...
Drill Bit Growth targeting Conventional Reservoirs & watching Resource Plays
Slide 5: | Growth... |
...through the drill bit
Bar chart of production by quarter from Q1 2005 through Q3 2006E by area, CAGR 29%
Slide 6: | Areas of Operations... |
|
Wyoming – Powder River Basin – Converse & Niobrara Counties |
West Texas – Delaware Basin – Pecos, Reeves & Ward Counties
- Eastern Shelf – Coke, Dawson, Howard, Martin, Mitchell & Scurry Counties |
South Texas – Gulf Coast Basin – DeWitt, Goliad, Lavaca & San Patricio Counties
Map of the United States highlighting Wyoming and Texas
Slide 7: | Production / Reserves... |
Proved Reserves – 104.7 Bcfe (1)
Net Production – 21.4 MMcfepd (2)
Pie chart = Wyoming 2%, South Texas 31%, West Texas 67%
3P Reserves – 303.6 Bcfe (1)
Pie chart = Wyoming 3%, South Texas 13%, West Texas 84%
(1) | as of 12/31/05 | |
(2) | Q2 actual |
|
Slide 8: | Acreage / Projects... |
Net Undeveloped Acres ~ 64,600 (1)
Pie chart = Wyoming 71%, South Texas 2%, West Texas 27%
237 3P Projects (2)
221 Incremental Projects (2)
Pie chart = Wyoming 19%, South Texas 8%, West Texas 73%
(1) | as of 12/31/05, includes mineral interest | |
(2) | as of 12/31/05 |
|
Slide 9: | West Texas... |
Map of Texas highlighting certain counties in West Texas
165 wells (74% WI) (1)
73.0 Bcfe (Proved) (1)
254.3 Bcfe (3P) (1)
14.1 MMcfepd (2)
17,600 NUA (3)
175 projects (3P) (1)
157 incremental projects (1)
Average depth: >14,000’
Project Areas:
IRA
Clearfork / Strawn Reef |
Delaware
Atoka-Wolfcamp / Mississippian / |
Devonian / Montoya / Ellenburger
Cherry Canyon
Cherry & Bell Canyon |
Oates SW
| Wolfcamp / Woodford / Devonian |
| ||
(1) | as of 12/31/05 |
| ||
(2) | Q2 actual |
| ||
(3) | as of 12/31/05, includes mineral interest | |||
Slide 10: | Oates SW... |
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 – drill horizontally re-entry
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: Devonian - ~0.2 MMcfepd
Manzanita: Q4 06 Devonian horizontal re-entry
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)
COP (flowing gas)
CHK (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
Slide 13: | South Texas... |
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
Edwards / Wilcox |
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 |
| |
Slide 14: | Wyoming... |
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
Teapot / Niobrara / |
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 & frac’d – flow testing underway
‘we perceived that the well could be huge’ (3)
(1) | as of 12/31/05 |
| |
(2) | Q2 actual |
| |
(3) | Pritchard Capital commentary from dinner with a BEXP senior engineer | ||
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 $3 – Sky’s the Limit
?? Bcfe – incremental (highest risk)
172 Bcfe (1) – possible (higher risk) |
(304 Bcfe 3P reserves) | | | significant un-booked potential | ||
27 Bcfe (1) – probable (low-risk) | | |
| ||
(132 Bcfe 2P reserves) |
| |||
105 Bcfe (1) – proved
(1) | as of 12/31/05 |
|
(2) | PV10 ranges from 12.5% discount to 12.5% increase to 12/31/05 SEC PV10 |
Slide 17: | 2006 CapEx Budget & Guidance... |
Production
Annual (Bcfe) | 7.5 – 8.5 | ||
Exit Rate (MMcfe/d) | 22 - 24 |
| |
Price Differentials off NYMEX
| Gas (%/Mcf) | 15% |
| |||
| Oil ($/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 May 2007 with $4.50-$5.50 floor
Slide 18: | 2007 CapEx Budget & Guidance... |
Coming Soon.....
Slide 19: | Summary... |
Niche exploitation and production company
High quality assets with substantial upside
Goals:
• | Increase Shareholder Value | ||
• | Drill Bit Growth |
| |
Slide 20: | www.abraxaspetroleum.com |
|
Picture: | Hudgins Ranch, Delaware Basin, West Texas |