Exhibit 99.1
Slide 1: Abraxas Petroleum Corporation
September 14, 2005
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: Collage of oil field pictures & outline of the U.S.
Slide 2: Re-Emerging Growth Story
Abraxas Petroleum Corporation
o AMEX: ABP
o Basic shares outstanding - 42.0 million
o Average trading volume (3 mos.) - 350,000 shares per day
o Share price appreciation (2005 to date) - 105%
o Operations in Texas and Wyoming
Natural gas
o Approximately 80%
Quality assets
o High ownership interests
o Operations
o High producing rates per well
o Large acreage positions
o Substantial upside
Slide 3: Refinanced 2004...
11 1/2% notes contained capital expenditure restrictions Refinanced debt in
October of 2004:
Sources: Uses:
----------------------------------------------------------------------
New $125 mm floating rate notes due 2009 11 1/2% notes due 2007
New $25 mm bridge loan Foothill credit facility
New $35 mm term loan in Canada
New $15 mm revolving credit facility (undrawn at closing)
Bifurcated collateral base by country
Slide 4: IPO 2005...
Grey Wolf Exploration Inc. IPO
o Closed: February 28, 2005
o $65 million in net proceeds repaid:
o $35 million term loan
o $25 million bridge loan
o $3.10 per proved Mcfe
o $20 million one-time gain
o Reduced 32% debt with 17% proved reserves
Simplified Capital Structure
Focused Asset Base
Slide 5: Goals 2005...
Focus on Drill Bit Growth through Capital Development Program in Texas and
Wyoming
o $32 mm budget
Continue to Maximize Shareholder Value
Slide 6: Focus...Focus...Focus...
Reserve Distribution of 93.7 Bcfe at 12/31/04
Map of the United States highlighting Wyoming and Texas
Wyoming 0.8 Bcfe 1%
West Texas 65.1 Bcfe 69%
South Texas 27.8 Bcfe 30%
Slide 7: U.S. Production... Production increasing after 6% decline in 2004 amid
capital expenditure restrictions ($9.3 mm)
Bar chart of U.S. production & capital expenditures by quarter
Slide 8: West Texas...
Map of Texas highlighting West Texas
Working interest average of 74% in 166 wells
Focus - continued development of deep Devonian / Montoya gas and overlying
Cherry Canyon oil
Over 200 potential drilling locations (33 PUD's)
2004 activity - Intensive engineering field studies in preparation for expanded
budget
2005 plans - 8 wells & Hudgins Ranch Acquisition (Oates SW)
(current: 1 completing and 1 re-entering)
(completed: 4 wells - combined gross IP of 5.2 MMcfepd)
Slide 9: Oates SW in West Texas...
Map of acreage in Oates SW Field area marked with 3-D seismic, producing and
potential well locations
Surface / Executive Rights
50% Mineral Interest
25% Mineral Interest
Oil & Gas Lease
Devonian horizontal wells
Initial Wolfcamp re-entry
Initial Woodford re-entry
Remaining re-entry candidates
Inventory on 160-acre spacing
Slide 10: South Texas...
Map of Texas highlighting South Texas
Working interest average of 93% in 45 wells
Focus - continued development of deep horizontal Edwards gas
13 identified drilling locations (10 PUD's)
2004 activity - Preparation for expanded budget
2005 plans - 3 wells (combined gross IP of 8.5 MMcfepd)
Multiple low-risk re-completion projects
Slide 11: Wyoming...
Map of Wyoming highlighting East Central Wyoming
100% working interest in 6 wells
51,000 net acres, long-term leases
Focus - development of multiple oil horizons
18 identified drilling locations
2004 activity - 1 vertical well
2005 plans - 4 wells (1 drilling and 2 awaiting completion)
Slide 12: Maximize Shareholder Value...
Continue to improve balance sheet with target debt/total mkt. cap of 40% to 60%
after Grey Wolf IPO @ 60%
Maintain financial flexibility and liquidity
Prioritize large opportunity set of over 230 potential drilling locations, 43 of
which are PUD's
Slide 13: 2002...2003...2004
Pro-Forma
December 31, 2002 December 31, 2004 % Change
Debt (mm) $300.4 $125.0 - 58%
Proved Reserves (Bcfe) 166.5 93.7 - 44%
Debt / Mcfe $1.80 $1.33 - 26%
Bar chart of debt and reserves from 2002 - 2004
Slide 14: 2005 U.S. Guidance...
Production:
Full Year (Bcfe) 6.5 - 7.5
Exit Rate (MMcfe/d) 19 - 21
Price Differentials from NYMEX
Gas ($/Mcf) 0.55
Oil ($/Bbl) 0.75
Production Taxes (% of revenue) 10%
Direct Lease Operating Expenses ($/Mcfe) 1.10
G&A ($/Mcfe) 0.75
D/D/A ($/Mcfe) 1.25
Capital Expenditures($MM) 32.0
Hedge position: 9,500 - 10,000 Mcfe/d through March 2006 w $5.00 floor
Slide 15: Summary...
Niche exploitation and production company
High quality assets with substantial upside
2005 goals:
Grey Wolf Exploration Inc. IPO
Capital Development Program in Texas and Wyoming
Maximize Shareholder Value
Slide 16: www.abraxaspetroleum.com
Picture: Brooks Draw, Wyoming