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February 2013
IPAA
OGIS Florida
Exhibit 99.1
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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.
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.
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.
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Corporate Profile
Shares outstanding(1)……................. 92.6 mm
Institutional(2)…………….. ~54%
Insider(2)…………………….. ~13%
# Recent Insider Buys... 7
# Shares Insider Buys…. 65,000
Market cap(3) ……………………... $199 mm
Bank debt net of cash(4)………. $112 mm
PV-10(5)……………………………….. 262 mm
(1) As of 9/30/12; production inclusive of Blue Eagle interest
(2) Per Thomson Reuters
(3) As of 1/31/12;
(4) As of 12/31/12 bank debt net of cash number unaudited - consists of $113mm drawn and approximately $575,000 in net cash.
(5) As of 6/30/12 inclusive of Blue Eagle interest and CANAXAS. Excludes Nordheim. Uses 6/29/12 NYMEX flat pricing
(6) Based on mid year reserves excluding Nordheim and 3Q12 production annualized; inclusive of Blue Eagle
EV/BOE(1,3,5)………………………… $10.94
Proved Reserves(5).…………..... 29.5 mmboe
% Oil/Liquids……………… ~56%
% Proved developed….. ~50%
% Operated PV-10……… ~94%
Production(1).……………………… ~4,177 boepd
R/P Ratio(6)…………………………. 19.4x
2013E CAPEX………………………. $70mm
NASDAQ: AXAS
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Investment Thesis
Ø Exposure to “core” acreage in top U.S. oil resource plays
Ø Significant exposure to emerging NAM oil resource plays
Premier
Acreage
Acreage
Value +
Growth
Growth
Ø Low decline legacy production
Ø “Manufacturing” model in repeatable resource plays leads to visible growth
Proven
Operator
Operator
Ø Company owned rig in Bakken = pad drilling = efficiency gains
Ø Deep technical and G&G staff
Oil
Weighted
Weighted
Ø 53% crude oil and liquids weighted(1)
Ø Percentage likely to grow meaningfully given capital focus
(1) As of 06/30/12; production inclusive of Blue Eagle interest; excludes Nordheim
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Business Plan - 2013
§ FOCUS + DELEVER + GROW
§ ReFOCUS Portfolio and CAPEX on Highest Returning Basins
§ Currently: Williston, Eagle Ford, PRB, Permian
§ DELEVER: Actively Pursue Divestitures
§ Properties trading above internal assessment of fair value
§ Lack of scale/high margin production
§ Exemplified by recent transactions for ~$22mm
§ Reduce leverage and maintain that profile
§ Target Debt/EBITDA < 2.0x by YE13 (1)
§ GROW: The Outcome of Sound Investment Decisions
§ Bakken/TFS:
§ Accelerate with company owned drilling rig
§ Eagle Ford:
§ Continuous drilling program
(1) Excluding building mortgage and rig loan which are secured by the building and rig, respectively. EBITDA definition per bank loan agreement (excludes Rig EBITDA)
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Proved Reserves (MMBoe)(1): 29.5
• Proved Developed: 50%
• Liquids: 56%
• Operated (by PV10): 94%
Abraxas Petroleum Corporation
High Quality Assets
Alberta, Canada
(1) Net proved reserves as of June 30, 2012, including AXAS’ share of Blue Eagle’s proved reserves, Canada; exclusive of Nordheim
Williston:
Bakken / Three Forks
PRB:
Niobrara, Turner
Midland/Eastern Shelf:
Emerging Cline, Wolfcamp
Eagle Ford Shale
CBP: Conventional
Delaware Basin:
Emerging Bone Spring, Wolfcamp
Rocky Mountain
South Texas / Gulf Coast
Permian Basin
Canada
Pekisko
Eastern Shale
Basin: Duvernay
Basin: Duvernay
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Reserve / Production Summary
Production(2) - 4,177 Boepd
(1) Net proved reserves as of June 30, 2012, including AXAS’ share of Blue Eagle’s proved reserves per the September 2012 dissolution and exclusive of Nordheim
(2) Daily net production for the quarter ended September 30, 2012, including AXAS’ share of Blue Eagle’s production
Production Mix
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AXAS Production
(1) Includes AXAS’ share of Blue Eagle’s production (50% in Q1 and Q2 2011, 41% in Q3 2011 and 35% in Q4 2011, Q1 2012 and Q2 2012)
Oil/NGL % 34% 35% 36% 39% 43% 44% 48% 48% 52% 53% 53%
Production Net to AXAS(1)
61% Liquids
Growth
Since 1Q10
Growth
Since 1Q10
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(1) Proved, Probable PV-10 net of Nordheim divestiture. Proved, Probable, Possible PV-10 based off mid year internal reserves and 6/29/12 flat pricing
(2) Building, Rig & Other PP&E (workover rigs, misc equipment, etc) based off net book value
(3) Tax assessment of AXAS surface ownership in 162 acres Coke, TX; 613 acres Scurry, TX. Purchase price of AXAS 1,769 acres in San Patricio, TX; 12,178 acres Pecos, TX; 582 acres McKenzie, ND & Condos; 50 acres DeWitt, TX.
(4) Bank debt as of 12/31 less approximately $575,000 in net cash. WC Deficit as of 9/30 - excludes derivative assets and liabilities
Base NAV
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2013 Capital Budget/Guidance
Project Area | Net Acres | 2013 Drilling Program | 2013 Net Capital ($MM) | ||||
Gross | Net | ||||||
Bakken / Three Forks | 23,320 | 12.3 | 6.3 | $47.4 | |||
Eagle Ford Shale | 7,306 | 11.0 | 2.6 | $19.1 | |||
Permian Basin | 41,131 | 2.0 | 1.9 | $0.7 | |||
PRB | 17,800 | 0.0 | 0.0 | $0.0 | |||
Other (1) | 50,000+ | 0.0 | 0.0 | $2.8 | |||
Total: | 130,000+ | 25.3 | 10.8 | $70.0 |
2013 Production Estimate: 4,900-5,200 BOEPD (21-28% growth)
•Variance due to timing of completions
•Does not take into effect the impact of any potential asset sales
(1) Other includes workover and recompletion activity primarily in the Williston Basin, Permian and Gulf Coast as well as activity in Canada.
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AXAS Hedges
2013 | 2014 | 2015 | 2016 | |
OIL - weighted average price | $86.70 | $94.05 | $85.00 | $84.00 |
% of 3Q Oil Production | ~71% | ~59% | ~50% | ~47% |
$MM Revenue Protected | $42mm | $37mm | $29mm | $27mm |
NYMEX-based fixed price swaps:
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Bakken / Three Forks
County | McKenzie | Richland | Burke | Sheridan | Billings | Divide | Roosevelt | Williams | Stark | Dunn |
Net Acres | 5,535 | 5,551 | 3,255 | 2,261 | 1,879 | 1,442 | 1,367 | 1,239 | 563 | 123 |
Percent Operated | 55% | 30% | 79% | 0% | 0% | 0% | 47% | 0% | 0% | 0% |
Net Bakken Locations (1) | 17 | 17 | 10 | 7 | 6 | 5 | 4 | 4 | 0 | 1 |
Net TFS Locations(1) | 17 | 17 | 10 | 7 | 6 | 5 | 4 | 4 | 2 | 1 |
(1) Unrisked locations based on eight wells (four Bakken and four Three Forks) per 1,280 acre units;
§ 109,658 Gross / 23,320 Net Acres
§ ~100% held by production
§ Drilling Inventory:
§ D&M Risked/Identified:
§ 409 Gross / 64 Net
§ $47.4 MM budget
§ Operated
§ Pad-drilling
§ Company owned rig
§ 2013 to date:
§ Completing: 2 Gross (.98 Net)
§ Drilling: 4 Gross (1.37 Net)
§ Non-operated wells
§ 2013 to date:
§ Completed: 2 Gross (.05 Net)
§ Completing: 5 Gross (.35 Net)
§ Drilling: 1 Gross (.03 Net)
§ Waiting on Rig: 2 Gross (.15 Net)
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Operated Bakken - North Fork
North Fork
§ 3,314 Net Acres
§ D&M Risked Operated Locations:
§ Completed: 3 Gross / 2.1 Net
§ Completing: 2 Gross / 1.0 Net
§ Drilling: 4 Gross / 1.4 Net
§ Remaining: 22 Gross / 11 Net
Recent Operated Activity:
§ Ravin 26-35 1H:
§ Cum. production (27 mos): 136.5 Mboe
§Stenehjem 27-34 1H:
§ Cum. production (20 mos): 134.5 MBoe
§Jore Federal 2-11 3H:
§ Cum. production (4 mos): 32.7 MBoe
§Ravin 26-35 2H:
§ Completing
§Ravin 26-35 3H:
§ Completing
§Lillibridge 1H, 2H, 3H & 4H:
§ Drilling
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Operated Bakken - Harding
Harding
§ 2,886 Net Acres
§ Richland, MT and McKenzie, ND Counties
§ D&M Risked Operated Locations:
§ Middle Bakken: 27 Gross / 8.2 Net
§ Three Forks: TBD
Recent
Slawson
Activity
Slawson
Activity
Current Non -
Op Available
for Swap
Op Available
for Swap
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Bakken / Three Forks
Significant Long Term Investments:
§Raven Drilling:
§ 2000 HP walking rig
§ Dedicated AXAS crew
§ Company owned man camp
§ Allows for significant efficiency gains
§North Fork Water System
§ Will service all North Fork wells
§ Enables AXAS to achieve cost savings via
centrally located frac pond & disposal well
centrally located frac pond & disposal well
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Economics:
§~462 mboe recovery
§80% oil; 8% NGLs; 11% gas
§$8.5mm D&C
Parameters:
di 99.0
b 1.5
dm 7.0
GOR 1150
Bakken / Three Forks
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Eagle Ford Shale
§ WyCross McMullen County:
§ ~18.75-25% working interest
§ 6,389 Gross / 1,035 Net
§ Eagle Ford: Volatile Oil
§ Jourdantan: Atascosa County
§ 100% working interest
§ ~4,467 Gross / 4,399 Net
§ Eagle Ford/Buda: Oil
§ Yoakum: DeWitt county
§ 100% working interest
§ 2,097 Gross / 1,908 Net
§ Eagle Ford: Dry Gas
§ Planned Activity:
§ Continuous drilling program
§ Economics (WyCross):
§ EUR 575mmboe
§ $7.0mm D&C
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Eagle Ford Shale - Core Area
WyCross
§Core of the volatile oil window
§6,389 Gross / 1,035 Net
§Locations (assuming 80s)
§ 80 Gross / 20 Net
Recent Operated Activity:
§Cobra 1H
§ Cum. production (12 mos): 144.1 MBoe
§ 92% Oil / NGLs
§Cobra B 1H
§ Cum. production (2.5 mos): 32.7 MBoe
§ 95% Oil / NGLs
§Mustang 1H
§ Cum. production (1.5 mos): 50.5 MBoe
§ 91% Oil / NGLs
§Corvette C 1H
§ On production
§Gran Torino A 1H
§ Completing
§Mustang 3H
§ Drilling
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Eagle Ford - WyCross
Economics:
§~575 mboe recovery
§70% oil; 11% NGLs; 20% gas
§$7.0mm D&C
Parameters:
di 99.11
b 1.3
dm 7.0
GOR 1000
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PRB - Stacked Pay Opportunities
Converse / Niobrara Counties, Wyoming
§ Gross / Net Acres:
§ 20,720 / 17,800
§ Primarily in Converse and Niobrara
Counties
Counties
§ ~2,100 net acres in Campbell County
§ ~90% held by production
§ Historical Activity:
§ 13 wells (2000 - 2011)
§ 8 horizontal / 5 vertical
§ Recent Activity:
§ Hedgehog State 16-2H (Crossbow)
§ Cum production (11 mos): 107.9 MBoe
§ 49% Oil / NGLs
Brooks Draw:
Sage Grouse 3H:
(Cum Oil 25 MBbl / 50 MBbl EUR)
Prairie Falcon 3H (Niobrara)
Recent Industry Activity:
74 Permits
8 Completions
Porcupine Field:
Hedgehog State 16-2H (Turner)
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Permian Basin - Emerging Hz
Spires Ranch (Nolan County)
§Monitoring industry activity
§Geologic evaluation
§Logged shales through Spires 89 1H
Millican Reef (Coke County)
§Monitoring industry activity
§Geologic evaluation
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Canada - Duvernay
EOG Strikes Oil in Duvernay's East Shale Basin
“New public data for EOG’s Duvernay horizontal at 1-20-38-28W4 showed a peak calendar
-day rate to date of 239 boe/d for December. Oil comprised 88% of the wellhead
production stream…We believe there is a possibility EOG is restricting rates or testing the
well, meaning it could be producing the well intermittently through the months.
-day rate to date of 239 boe/d for December. Oil comprised 88% of the wellhead
production stream…We believe there is a possibility EOG is restricting rates or testing the
well, meaning it could be producing the well intermittently through the months.
The reported rates are in the ballpark of our Eagle Ford West oil type curve peak rate of
~300 boe/d. Under Crown royalties, the Eagle Ford West type curve results in a break-even
price of $82/boe and a per-well NPV of $1 million, assuming a $9 million well cost.”
~300 boe/d. Under Crown royalties, the Eagle Ford West type curve results in a break-even
price of $82/boe and a per-well NPV of $1 million, assuming a $9 million well cost.”
-- ITG, February 7, 2013
Alberta, Canada: Eastern Shale Basin
Recently Drilled
Neighboring Well
Neighboring Well
Duvernay:
§ Net Acres: 42,880 (100% WI)
§ Crown: 32 Sections; five year leases
§ Farm-out/option: 35 Sections; three year term
§ Represents a continuous, self sourced resource contained in a shaley
organic rich low permeability reservoir
organic rich low permeability reservoir
§ Shale assessment and productivity expectations developed based on a
review of analogues (i.e. Eagle Ford, Kaybob, Pembina/ Willesden
Green)
review of analogues (i.e. Eagle Ford, Kaybob, Pembina/ Willesden
Green)
§ All critical shale parameters point to the Duvernay being an excellent
source and reservoir rock
source and reservoir rock
§ Available rock and completion data point to Canaxas lands containing
volatile oil hydrocarbons in place
volatile oil hydrocarbons in place
Planned Activity:
§ Drill vertical pressure test
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Canada - Duvernay
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Near-Term Drilling Catalysts
Abraxas Operated | |||||||
Scheduled IP Month | Formation | Basin/Field/Well | AXAS WI | 30 Day IP | Mos Production | Cum Prod | Notes |
Williston Basin | |||||||
April 2013 | Bakken/TFS | Lillibridge 1H-4H | 34% | NA | NA | NA | PAD Development Drilling |
February 2013 | Bakken | Ravin 26-35 2H | 49% | NA | NA | NA | Completing |
February 2013 | Bakken | Ravin 26-35 3H | 49% | NA | NA | NA | Completing |
October 2012 | TFS | Jore Fed 02-11 3H | 76% | 510 | 4 | 32.7 | |
PRB | |||||||
April 2012 | Turner | Hedgehog State 16.2H | 100% | 442 | 11 | 107.9 | |
Eagle Ford | |||||||
March 2013 | Eagle Ford | Mustang 3H | 19% | NA | NA | NA | Drilling |
February 2013 | Eagle Ford | Gran Torino A 1H | 19% | NA | NA | NA | Completing |
January 2013 | Eagle Ford | Corvette C 1H | 25% | NA | NA | NA | On Production |
December 2012 | Eagle Ford | Mustang 1H | 19% | 1,152 | 1.5 | 50.5 | |
November 2012 | Eagle Ford | Cobra B 1H | 25% | 592 | 2.5 | 32.7 | |
March 2012 | Eagle Ford | Cobra 1H | 25% | 957 | 12 | 144.1 | |
Permian Basin | |||||||
September 2012 | Strawn | Spires Ranch 89 1H | 100% | 195 | 5 | 13.5 | |
Abraxas Non Operated | |||||||
Scheduled IP Month | Formation | Basin/Field/Well | Gross/Net | 30 Day IP | Mos Production | Cum Prod | Notes |
Williston Basin | |||||||
2013 | Bakken/TFS | Various | 2/.05 | NA | NA | NA | Various operators; online to date |
2013 | Bakken/TFS | Various | 5/.35 | NA | NA | NA | Various operators; completing |
2013 | Bakken/TFS | Various | 1/.03 | NA | NA | NA | Various operators; drilling |
2013 | Bakken/TFS | Various | 2/.15 | NA | NA | NA | Various operators; w/o drilling rig |
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NASDAQ: AXAS