September 26, 2011
Exhibit 99.1
2
Forward-Looking Statements
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.
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.
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.
3
AXAS Highlights
§ NASDAQ: AXAS
§ Shares outstanding: ~92.1 million
§ ~40% institutional
§ ~10% insider
§ Average trading volume: ~2.5 million shares per day
§ Short position: ~22 million shares (08-31-11)
§ Market capitalization: ~$325 million
§ Total long-term revolving bank debt: ~$90 million
§ 2011 Capital program: $60 million+
§ 100% oil or liquids weighted
§ 2011 Production guidance(1):
§ 4,000 - 4,200 boe/d average
§ 4,700 - 4,900 boe/d exit rate
(1) Production guidance includes AXAS’ share of Blue Eagle’s production
4
Unique to AXAS
§ Portfolio of unconventional oil assets
§ 50,000+ net acres
§ Acreage predominately held by production
§ Operated operations in Bakken exclusively pad development
§ Will continue non-op participation
5
AXAS Hedges
2011 | 2012 | 2013 | AVE. | ||
OIL - weighted average price | $76.61 | $70.89 | $80.79 | $75.69 | |
% OIL PDP(1) | 77% | 80% | 67% | ||
GAS - weighted average price | $6.52 | $6.77 | $6.84 | $6.69 | |
% GAS PDP(1) | 82% | 81% | 66% |
NYMEX-based fixed price swaps:
(1) As of December 31, 2010
6
Net Asset Value
(1) Includes identified and resource potential on Bakken, Niobrara, Eagle Ford, Pekisko and Texas oil plays. Excludes identified and resource reserves in Alberta Basin Bakken
and value of Eagle Ford joint venture drilling carry. The probable and possible reserve estimates do not necessarily represent reserves defined under SEC rules.
and value of Eagle Ford joint venture drilling carry. The probable and possible reserve estimates do not necessarily represent reserves defined under SEC rules.
Net Asset Value per Share(1)
Proved Reserves Only
$ 2.46
Proved PLUS Probable Reserves
$ 13.82
Proved PLUS Probable PLUS
Possible Reserves
Possible Reserves
$ 28.54
7
ND
MT
WY
CO
UT
TX
OK
LA
Proved Reserves (MMBoe)(1):
26.6
26.6
- Proved Developed: 49%
- Oil/NGL %: 42%
- Operated: 81%
- Operated: 81%
Abraxas Petroleum Corporation
(1) Net proved reserves as of December 31, 2010, including
AXAS’ 50% share of Blue Eagle’s proved reserves
AXAS’ 50% share of Blue Eagle’s proved reserves
(41% as of 06/30/11)
Bakken / Three Forks
Play
Barnett / Woodford
Shale Play
Wolfberry Trend
Rocky Mountain
Mid-Continent
Permian Basin
Gulf Coast
Eagle Ford Shale Play
High Quality Assets
Alberta
Niobrara Play
Alberta Basin
Bakken Play
Alberta
Wolfbone Play
8
Reserve / Production Summary
Proved Reserves(1) - 26.6 MMBoe
Production(2) - 3,845 Boepd
(1) Net proved reserves as of December 31, 2010, including AXAS’ 50% share of Blue Eagle’s proved reserves (41% as of 06/30/11)
(2) Daily net production for the quarter ended June 30, 2011, including AXAS’ 50% share of Blue Eagle’s production (41% as of 06/30/11)
Basin
21%
Basin
31%
Canada
1%
Canada
2%
9
AXAS Production
(1) Includes AXAS’ share of Blue Eagle’s production (50% in Q1 and Q2 2011 and 41% in July 2011)
Base production
Divestitures
Weather disruptions
34% 35% 36% 39% 42% 49% 50% >50% Oil/NGL %
(1)
(1)
(1)
Range of guidance
10
2011 Capital Budget
§ Large inventory of drilling locations in unconventional and conventional oil plays
§ 1H:11 oil weighted drilling program focused on low-risk / high-return Texas conventional
oil projects
oil projects
§ 2H:11 accelerate operated drilling activity in the Bakken and Three Forks plays
(1) Unrisked locations based on eight wells (four Bakken and four Three Forks) per 1,280 acre units; 160 acre spacing assumptions in the Eagle Ford Shale; 3-D identified locations in
the Niobrara Shale play
the Niobrara Shale play
(2) Eagle Ford Shale acreage and locations are gross to the Blue Eagle JV which Abraxas owns a 50% equity interest (41% as of 06/30/11)
Project Area | Net Acres | Net Unrisked Locations(1) | 2011 Drilling Program | 2011 Net Capital ($MM) | |||||
Gross | Net | ||||||||
Bakken / Three Forks | 20,835 | 130 | 15.0 | 3.0 | $25.5 | ||||
Eagle Ford Shale(2) | 12,073 | 75 | 4.0 | 4.0 | $0.0 | ||||
Niobrara Shale | 17,800 | 56 | 2.0 | 2.0 | $8.0 | ||||
Pekisko Fairway | 9,120 | 10 | 2.0 | 2.0 | $4.0 | ||||
Alberta Bakken | 10,000 | - | - | - | - | ||||
Texas Oil Plays | 8,700 | 65 | 20.0 | 20.0 | $16.1 | ||||
Other | n/a | n/a | 4.0 | 4.0 | $6.4 | ||||
Total: | 78,528 | 336 | 47.0 | 35.0 | $60.0 | ||||
11
Bakken / Three Forks
Nesson
2,270 net acres
Elm Coulee
440 net acres
Elkhorn Ranch / Lewis & Clark
2,035 net acres
Harding / Rough Rider
7,010 net acres
Carter
3,200 net acres
Sheridan
2,340 net acres
North Fork / Nesson
3,540 net acres
§ Gross / Net Acres:
§ 109,658 / 20,835
§ ~100% held by production
§ Drilling Inventory:
§ 1,280 acre units
§ ~685 gross / 130 net
§ 4 Bakken / 4 Three Forks wells
§ Recent Activity:
§ 1st operated Three Forks well
(Ravin 26-35 1H; 60% WI) -
1,705 boe/d unrestricted rate
§ 1st operated Middle Bakken well
(Stenehjem 27-34 1H; 79% WI) -
(Stenehjem 27-34 1H; 79% WI) -
577 boe/d (74 day average)
§ 19 gross / 1.0 net non-operated
wells
wells
§ 2011 Activity:
§ $25.5 MM budget
§ 5.0 gross / 2.5 net operated wells
§ 10.0 gross / 0.5 net non-operated
wells
wells
§ Long-term arrangements:
§ Drilling rig (purchased)
§ Completion services
Ravin 26-35 1H - TFS
1,705 boe/d
Stenehjem 27-34 1H - Bakken
577 boe/d (74 day average)
12
Why Drilling Rig?
§Economics:
§ 3 year cost to wells
§ Contract - $29.6 MM
§ Own - $16.4 MM
§ Payout - 3 years
§Efficiency & Performance:
§ Company crews incentivized with company goals - not contractors
§ Pad drilling allows semi-permanent man camp
§Control:
§ Company makes decisions
§ Leverage to increase land ownership
§Financing:
§ Very favorable terms
13
AXAS operated wells
Three Forks Bakken
AXAS non-operated wells location location
Bakken / Three Forks
§North Fork/Nesson:
§ 3,540 net acres
§ 1,280 acre units: 8 B/TF wells
§ 64 gross (19.7 net)
§ Drilled: 4 gross (1.5 net)
§ Locations: 60 gross (18.2 net)
§Economics:
§ D&C Cost: $9.0 MM
§ $7.5 MM (pad drilling)
§ EUR: 500 MBoe
§ 390 MBbl oil
§ 425 MMcf sales gas
§ 45 MBbl NGL
§ IRR: ~30% (no acreage)
§ ~46% (pad drilling)
§Ravin 26-35 1H:
§ Cumulative production (249 days):
§ 76,000 Boe
§ 86% Oil & NGLs
§Stenehjem 27-34 1H:
§ Cumulative production (74 days):
§ 43,000 Boe
§ 84% Oil & NGLs
North Fork / Nesson
3,540 net acres
79% WI
2% WI
15% WI
6% WI
48% WI
7% WI
30% WI
Koeser (B)
Stenehjem (B)
Johnson (B)
Ravin (TF)
59% WI
<1% WI
14
Eagle Ford Shale
§ Acreage:
§ 12,073 net
§ Atascosa, DeWitt, Lavaca and McMullen
Counties, TX
Counties, TX
§ Drilling Inventory:
§ 75 net JV locations
§ 160 acre spacing
§ Economics:
§ D&C Cost: $8.5 MM
§ EUR: 500 MBoe(1)
§ Blue Eagle Joint Venture:
§ AXAS operator
§ AXAS contributed 8,333 net acres ($25 MM)
§ Rock Oil contributed $25 MM at closing
§ Rock Oil committed additional $50 MM
§ Upon full funding, AXAS equity interest - 25%
§ $11 MM Rock Oil contribution (06/29/11)
§ 41% equity interest (AXAS)
§ Recent Activity:
§ 1st well: T Bird 1H - on production
§ 2nd well: Matejek Gas Unit 1 - on production
§ 3rd well: Grass Farms 1H - completing
§ Acquired 2,487 net acres (McMullen Co.)
§ 2011 Activity:
§ $34 MM to drill 4.0 wells
§ Funded 100% by Rock Oil
Lavaca County
Atascosa County IP Rates:
EOG: Peeler 2H: 605 bo/d
EOG: Peeler 10H: 342 bo/d
EOG: Hundley 2H: 493 bo/d
DeWitt County IP Rates:
Enduring: Keach GU 1: 3,633 boe/d
TLM: Halepeska Gas Unit 1: 2,665 boe/d
PXD: Charles Riedesel GU 1: 2,616 boe/d
HK: Oliver B 1H: 1,968 boe/d
HK: Krause 1H: 1,667 boe/d
HK: Lanik 1H: 1,404 boe/d
AXAS: T-Bird 1H: 1,500 boe/d (1st 45 days)
oil window
gas window
gas/condensate
window
(1) 1st JV Eagle Ford well - 1,100 MBoe of proved reserves
McMullen County
15
Drilling Inventory:
Nordheim Area -
§ 3,600 net acres
§ 160 acre spacing
§ 23 net wells
T Bird 1H:
§ JV - 100% WI
§ Op: AXAS
§ TMD - 19,450’
§ 5,700’ lateral
§ 15-stage frac
§ 75 days (spud to on-line)
§ Current:
800 Boepd
§ Cumulative (215 days):
AXAS owns a 50% equity interest in the Blue Eagle joint venture
(41% as of 06/30/11)
Eagle Ford Shale
Nordheim Prospect
DeWitt County, TX
oil window
gas window
16
Campbell
Converse
Niobrara
Weston
Niobrara Shale
Converse / Niobrara Counties, Wyoming
CHK / EOG:
Niobrara Permit
activity
activity
§ Gross / Net Acres:
§ 20,720 / 17,800
§ Primarily in Converse and
Niobrara Counties
Niobrara Counties
§ ~90% held by production
§ ~2,100 net acres in Campbell
County directly offsetting EOG
producing well
County directly offsetting EOG
producing well
§ Drilling Inventory:
§ 90 gross / 56 net locations
§ 3-D identified
§ Economics:
§ D&C Cost: $5.0 MM
§ EUR: 250 MBoe
§ Historical Activity:
§ 12 wells (2000 - 2009)
(7 horizontal / 5 vertical)
§ 1 vertical Niobrara
§ 2011 Activity:
§ $8.0 MM to drill 2.0 gross/net wells
§ 1st well (Prairie Falcon 3H)
§ drilling lateral
§ Other:
§ 23 sq. miles proprietary 3D
seismic data
seismic data
§ Full-diameter core data
EOG Crossbow Area:
3-19H: (Cum Oil 34 MBbl / Gas 145 MMcf)
2-18H: (Cum Oil 57 MBbl / Gas 428 MMcf)
8 successful horizontal wells
1-rig program
SWN / Samson / Helis:
10 Hrz. Permits;
1 completion
1 completion
AXAS Activity:
Sage Grouse 3H:
(Cum Oil 25 MBbl / 50 MBbl EUR)
CHK:
Sims 15-26H:
(Cum Oil 19 MBbl / Gas 634 MMcf)
17
West Texas - Spires Ranch
§ Economics:
§ D&C Cost: $1.6 MM
§ EUR: 160 MBoe
§ 80 MBbl oil
§ 200 MMcf sales gas
§ 45 MBbl NGL
§ IRR: 160%
§ Spires 126 1H:
§ Cumulative production (170 days):
§ 15,000 Boe
§ 75% Oil & NGLs
§ Spires 126 2H:
§ Average daily production (55
days):
days):
§ 110 Boepd
§ 74% Oil & NGLs
AXAS owns 100% working interest in Spires Ranch leasehold
5,600 net acres
Nolan
County
County
18
West Texas - Wolfbone
§ April 2011 TX GLO Lease Sale:
§ $5,295 / acre -
offsetting AXAS
§ Current Industry Activity:
§ 2 CWEI-CHK wells -
offsetting AXAS
(completed - w/o results)
§ Current Activity:
§ AXAS Lindemann 24-1 -
w/o fracture stimulation
AXAS’ leasehold at Nine Mile Draw (100% WI)
Reeves
County
County
3,000 net acres
AXAS
Lindemann 24-1
(w/o frac)
19
Near-Term Drilling Catalysts
AXAS OPERATED: | OUTSIDE OPERATED: |
Bakken/Three Forks, North Dakota • Stenehjem: on production • AXAS 79% • Horizontal drilling program • Purchased drilling rig • Spud 1st well: Fall 2011 Spires Ranch / NE Millican, West Texas • 3 horizontal oil wells - 2 wells: on production • 3rd well: drilling lateral • 2 vertical oil wells - 2nd well: completing • AXAS 100% Eagle Ford, South Texas • Matejek 1H - on production • JV 44%(1) • Grass Farms 1H - completing • JV 100%(1) Pekisko, Alberta, Canada • 2 horizontal oil wells - • 1st well: completed (w/o facilities) • 2nd well: completed (w/o facilities) • CANAXAS 100% Niobrara / Turner, Wyoming • 2 horizontal oil wells - • 1st well: drilling lateral • AXAS 100% | Bakken/Three Forks, North Dakota / Montana • Continental operated • 5 wells: 4 on production (2-TF, 2-B), 1 w/o rig • AXAS 4% • Denbury operated • 2 wells: on production • AXAS 2-6% • TAQA operated • 1 well: completing • AXAS 36% • Brigham operated • 3 wells: 1 on production, 2 completing • AXAS 1-7% • Whiting operated • 1 well: on production • AXAS 13% • Petro-Hunt operated • 1 well: drilling lateral • AXAS <1% • XTO Energy operated • 1 well: completing • AXAS 1% Mission Canyon, North Dakota • True operated • 2 horizontal wells: completed (w/o facilities) • AXAS 3-8% |
(1) AXAS owns a 50% equity interest in the Blue Eagle joint venture (41% as of 06/30/11)
20
Business Plan
§ 2011 Capital Program: $60 MM+
§ oil development
§ Bakken/TFS - Accelerate with purchase of drilling rig
§ Eagle Ford - Accelerate with JV
§ Target - 50/50 oil/gas production mix
§ Target - >90% operated
21
Appendix
22
(1) Eagle Ford Shale acreage and locations are net to AXAS’ 50% equity interest in the Blue Eagle JV (41% as of 06/30/11)
(2) Possible Bakken/Three Forks locations are based on three additional Bakken and four additional Three Forks wells per 1,280 acre unit
Note: The probable and possible reserve estimates do not necessarily represent reserves defined under SEC rules
NAV - Undiscounted
2010 PV-10 at Current Pricing
($100/$4.50)
($100/$4.50)
$313,084,390
Net Cash
$2,000,000
Less Outstanding Debt
($90,000,000)
Basin
Net Undeveloped
Acres
Acres
Well Spacing /
Acre
Acre
Net Locations
Per Well Reserves
(BOE)
(BOE)
Reserve Potential
(BOE)
(BOE)
Bakken / Three Forks
20,835
1280
16.3
500,000
8,138,672
Eagle Ford Shale(1)
6,037
160
37.7
500,000
18,864,094
Pekisko Fairway
9,120
10.0
150,000
1,500,000
Texas Oil Plays
8,700
65.0
57,423
3,732,500
Probable Reserve Value @$30 Netback
$1,387,057,969
Probable Reserve Value/Share (Unrisked)
$15.15
2P NAV/Share (Risked)
$13.82
Possible
Net Undeveloped
Acres
Acres
Well Spacing /
Acre
Acre
Per Well Reserves
(BOE)
(BOE)
Reserve Potential
(BOE)
(BOE)
Eagle Ford Shale(1)
6,037
80
37.7
500,000
18,864,094
Possible Reserve Value @$30 Netback
$2,695,043,906
3P NAV/Share (Risked)
$28.54
23
(1) Eagle Ford Shale acreage and locations are net to AXAS’ 50% equity interest in the Blue Eagle JV (41% as of 06/30/11)
(2) Possible Bakken/Three Forks locations are based on three additional Bakken and four additional Three Forks wells per 1,280 acre unit
Note: The probable and possible reserve estimates do not necessarily represent reserves defined under SEC rules
NAV - PV Equivalent
2010 PV-10 at Current Pricing
($100/$4.50)
($100/$4.50)
$313,084,390
Net Cash
$2,000,000
Less Outstanding Debt
($90,000,000)
Basin
Net Undeveloped
Acres
Acres
Well Spacing /
Acre
Acre
Net Locations
Per Well Reserves
(BOE)
(BOE)
Reserve Potential
(BOE)
(BOE)
Bakken / Three Forks
20,835
1280
16.3
500,000
8,138,672
Eagle Ford Shale(1)
6,037
160
37.7
500,000
18,864,094
Pekisko Fairway
9,120
10.0
150,000
1,500,000
Texas Oil Plays
8,700
65.0
57,423
3,732,500
Probable Reserve Value @$15 Netback
$693,528,984
Probable Reserve Value/Share (Unrisked)
$7.57
2P NAV/Share (Risked)
$8.14
Possible
Net Undeveloped
Acres
Acres
Well Spacing /
Acre
Acre
Per Well Reserves
(BOE)
(BOE)
Reserve Potential
(BOE)
(BOE)
Eagle Ford Shale(1)
6,037
80
37.7
500,000
18,864,094
Possible Reserve Value @$10 Netback
$898,347,969
3P NAV/Share (Risked)
$13.04
24
Low Risk Oil Development
West Texas - Spires Ranch
§ Gross / Net Acres: 5,600 (100% WI)
§ County: Nolan
§ Formation: Strawn
§ Locations: 10
§ D&C: $1.6 MM / EUR: 160 MBoe
§ 2011 Capex / Activity:
§ $4.8 MM to drill 3.0 wells
West Texas - Shallow Howe
§ Gross / Net Acres: 2,000 (100% WI)
§ County: Ward
§ Formation: Yates
§ Locations: 40
§ D&C: $400K / EUR: 40 MBoe
§ 2011 Capex / Activity:
§ $1.6 MM to drill 4.0 wells
South Texas - Portilla
§ Gross / Net Acres: 1,100 (100% WI)
§ County: San Patricio
§ Formation: Frio 7,400 and 8,100 sands
§ Locations: 15
§ D&C: $700K - $900K / EUR: 47 - 88 MBoe
§ 2011 Capex / Activity:
§ $9.7 MM to drill 13.0 infill wells
Portilla -
San Patricio County
Spires Ranch -
Nolan County
Shallow Howe -
Ward County
25
Canada Oil Development - Pekisko
§ Gross / Net Acres:
§ 9,120 (100% WI)
§ Drilling Inventory:
§ 10 gross / net locations
§ Economics:
§ D&C Cost: $2.0 MM
§ EUR: 150 MBoe
§ Historical Activity:
§ 2 horizontal wells (2010)
§ 2011 Activity:
§ $4.0 MM to drill 2.0 gross / net
horizontal wells offsetting successful
2010 Twining 9-11 well
horizontal wells offsetting successful
2010 Twining 9-11 well
§ 1st well - completed (w/o facilities)
§ 2nd well - completed (w/o facilities)
§ Other:
§ Horizontal development of conventional
field
field
§ 5,400’ vertical depth / 3,000’ lateral
length
length
Tomahawk
Twining
Pekisko Trend
Alberta, Canada
26
Southern Alberta Basin - Bakken
§ Gross / Net Acres:
§ >10,000 net acres
§ 800 net mineral acres
§ Glacier and Toole Counties, Montana
§ Leases have 5-10 year primary terms
§ 2011 Activity:
§ Continue to add to leasehold position in
geologically specific areas
geologically specific areas
§ Monitor industry drilling activity
AXAS Leasing Area
Blackfoot Nation Territory
Newfield Wells
Rosetta & Others Wells
Toole
Glacier
Glacier / Toole Counties, Montana
27
Rocky Mountain
Ø 8.4 MMBoe of proved reserves
Ø 53% proved developed
Ø 86% crude oil / NGL
Ø 1,004 Boepd of production
Ø 20.8 R/P ratio
Ø 896 gross (104 net) producing wells
Ø 72 PUD locations
Ø 81,990 net acres
Ø Primary producing basins include:
§ Williston Basin (MT and ND)
§ Powder River & Green River Basins (WY)
§ Uinta Basin (UT)
Ø Bakken / Three Forks - HBP
Rocky Mountain
ND
SD
MT
WY
CO
UT
Area of Operations
Overview
Net proved reserves, well count and acreage as of December 31, 2010
Daily net production for the quarter ended June 30, 2011
Alberta Basin
Bakken Play
Bakken / Three Forks
Play
Niobrara Play
28
Permian Basin
Permian Basin
Ø 5.6 MMBoe of proved reserves
Ø 79% proved developed
Ø 31% crude oil / NGL
Ø 1,201 Boepd of production
Ø 12.3 R/P ratio
Ø 210 gross (156 net) producing wells
Ø 5 PUD locations
Ø 38,951 net acres
Ø Primary producing sub-basins:
§ Delaware Basin
§ Eastern Shelf
TX
Area of Operations
Overview
Barnett / Woodford
Shale Play
Wolfberry Trend
Net proved reserves, well count and acreage as of December 31, 2010
Daily net production for the quarter ended June 30, 2011
Wolfbone Play
29
Gulf Coast
Gulf Coast
Ø 10.9 MMBoe of proved reserves
Ø 30% proved developed
Ø 17% crude oil / NGL
Ø 1,398 Boepd of production
Ø 32.0 R/P ratio
Ø 53 gross (47 net) producing wells
Ø 23 PUD locations
Ø 7,776 net acres
Ø Primary producing sub-basin:
§ Onshore Gulf Coast
TX
Area of Operations
Overview
Eagle Ford
Shale Play
Net proved reserves, well count and acreage as of December 31, 2010
Net proved reserves, R/P ratio, PUD locations and daily net production include AXAS’ share of Blue Eagle
Daily net production for the quarter ended June 30, 2011
30
NASDAQ: AXAS