Exhibit 99.1
8-K Robert L.G. Watson will be presenting at the Pritchard Capital Energy
Conference in San Francisco, January 11, 2006
Slide 1: Abraxas Petroleum Corporation
Energize 2006: Reality & Opportunity
Pritchard Capital Energy Conference
January 11, 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: Collage of oil field pictures & outline of the U.S.
Slide 2: Back to the Basics...
Abraxas Petroleum Corporation
o AMEX: ABP
o Fully diluted shares outstanding - 44.5 million
o Average trading volume (2005) - 489,000 shares per day
o Traded 123 million shares (2005) - 276% of FD shares
o Share price appreciation (2005) - 128%
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: Debt to Enterprise Value...
Current Debt / Total Enterprise Value = 37%
Area chart of total enterprise value and market cap from Dec 95 to current with
significant corporate events notated
Slide 4: Growth...
....through the drill bit
2005 Success Rate = 92% (13 major projects)
Cash Flow 400%
Revenue 80%
Production 58%
Bar chart of cash flow, revenue and production by quarter
Slide 5: Operations...
Proved Reserves - 93.7 Bcfe (1)
Net Production - 22.4 MMcfepd (2)
Net Undeveloped Acres ~ 65,000 (3)
Map of the United States highlighting Wyoming and Texas
Wyoming 0.8 Bcfe - 1%
0.3 MMcfepd - 1%
46,000 acres - 71%
West Texas 65.1 Bcfe - 69%
14.9 MMcfepd - 67%
17,900 acres - 27%
South Texas 27.8 Bcfe - 30%
7.2 MMcfepd - 32%
1,100 acres - 2%
(1) as of 12/31/04
(2) 2005 exit rate
(3) as of Dec-05
Slide 6: Goals 2006...
Back to Basics...
Operations
- ----------
Drill Bit Growth
Emerging Gas & Oil Resource Plays
Shareholders
- ------------
Continue to Maximize Value
Slide 7: 2006 Projects...
$40 million budget from $70 million of projects approved by Board
South Texas
------------
Edwards
Portilla
Wilcox
West Texas
----------
Cherry Canyon
Delaware
Oates SW
IRA
Wyoming
-------
Brooks Draw
Slide 8: South Texas...
Map of Texas highlighting certain counties in South Texas
45 wells (93% WI)(1)
27.8 Bcfe - 30%
7.2 MMcfepd - 32%
1,100 NUA - 2%
2006 Project Areas & Target Zones:
- ----------------------------------
Edwards
Edwards / Wilcox
Wilcox
Wilcox / Reklaw / Mackhank
Portilla
Frio / Vicksburg
(1) as of 12/31/04
Slide 9: West Texas...
Map of Texas highlighting certain counties in West Texas
166 wells (74% WI)(1)
65.1 Bcfe - 69%
14.9 MMcfepd - 67%
17,900 NUA - 27%
2006 Project Areas & Target Zones:
- ----------------------------------
IRA
Clearfork / Strawn Reef
Delaware
Atoka / Mississippian / Montoya / Woodford / Devonian
Cherry Canyon
Cherry & Bell Canyon
Oates SW
Wolfcamp / Woodford / Atoka / Devonian
(1) as of 12/31/04
Slide 10: Delaware Basin Activity...
Map of Texas highlighting certain counties in West Texas
Resource Gas Plays
Loving / Reeves / Ward Counties
Primary Target - ATOKA
Culberson / Reeves / Pecos Counties
Primary Target - WEST TEXAS SHALES
Slide 11: Atoka...
Map of Texas highlighting Reeves, Loving and Ward counties in West Texas
CHK & APC: Large fracs
ABP offset acreage: CHK recently leased ~10,000 acres for $200- 2,000 per acre
ABP: ROC, Block 16 & Howe Fields - numerous producers (never fraced)
ABP: Nine Mile Draw Field - shows behind pipe
Slide 12: West Texas Shale...
Map of Texas highlighting Culberson, Reeves and Pecos counties in West Texas,
highlighting the following companies which are active in the area:
EOG, ECA, Petro-Hunt, SWN, RRC, BR, KWK, PPP, K2X, CWEI (ECA), Reliance,
XTO
ABP: Nine Mile Draw Field - shows behind pipe
ABP: Oates SW Field - first Woodford well - installing production facilities
Slide 13: Wyoming...
Map of Wyoming highlighting certain counties in east central Wyoming
Resource Oil Play
10 wells (100% WI) (1)
0.8 Bcfe - 1%
0.3 MMcfepd - 1%
46,000 NUA - 71%
2006 Project Area & Target Zones:
- ---------------------------------
Brooks Draw
Niobrara / Turner
Mowry / Muddy
(1) as of 12/31/05
Slide 14: 2006 Guidance...
Production
Annual (Bcfe) 7.5 - 8.5
Exit Rate (MMcfe/d) 22 - 24
Price Differentials off NYMEX
Gas (%/Mcf) 5%
Oil ($/Bbl) 1.00
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) 1.30
Capital Expenditures ($MM) 40.0
Guidance does not include non-cash and extraordinary items
Hedge position: 10,000 Mcf/d through July 2006 with $5.00-$8.00 floor
Slide 15: Maximize Shareholder Value...
Continue to improve balance sheet
o current debt to total enterprise value = 37%
Maintain financial flexibility and liquidity
Prioritize large opportunity set of projects
Slide 16: Summary...
Niche exploitation and production company
High quality assets with substantial upside
Goals:
o Drill Bit Growth targeting Emerging Gas & Oil Resource Plays in
Texas and Wyoming
o Maximize Shareholder Value
Slide 17: www.abraxaspetroleum.com
Picture: Delaware Basin, West Texas