EXHIBIT 99.1
ABRAXAS PETROLEUM CORPORATION
www.abraxaspetroleum.com
500 N. Loop 1604 East, Suite 100, San Antonio, Texas 78232
Office: 210.490.4788 Fax: 210.490.8816
NEWS RELEASE
Abraxas Announces Preliminary 2007 Capital Expenditure Budget
SAN ANTONIO (Nov. 20, 2006) - Abraxas Petroleum Corporation (AMEX:ABP) today
announced a preliminary 2007 capital expenditure budget of $27 to 44 million.
The preliminary budget includes roughly 20 to 30 projects, which will be
selected from the Company's expansive inventory of projects on its existing
leasehold and may include the following - the listed projects are subject to
change based on rig availability and drilling results:
West Texas
o Devonian horizontal re-entry (14,000') in the Oates SW Field
of Pecos County;
o Woodford Shale horizontal re-entry (13,500') in the Oates SW
Field of Pecos County;
o Cherry/Bell Canyon (7,000') in-fill drilling in Ward County;
o Spraberry (9,000') in-fill drilling in Midland County;
o Clearfork (3,500') in-fill drilling in Mitchell and Scurry
Counties; and
o Strawn Reef (6,000') in-fill drilling in Coke County.
South Texas
o Several exploratory wells (9,000'-12,000') targeting the
Wilcox on internally generated prospects in Bee and Karnes
Counties.
Wyoming
o Mowry horizontal well (8,500') in the Brooks Draw Field of
Converse and Niobrara Counties.
The ultimate capital expenditures will depend on a number of factors, including
but not limited to commodity prices, rig availability, service costs, and
general market conditions.
The Company plans to issue guidance for 2007 after necessary drilling contracts
have been secured and consequently, has a better handle on the timing of certain
projects.
"Our 2007 budget was partly designed to improve our reserve ratio through the
conversion of proved undeveloped reserves (PUD), as well as probable / possible
reserves, to the category of proved developed reserves (PD). Our goal is to
increase the ratio of proved developed reserves to total proved reserves by at
least 10%; we feel that such an improvement in our PD ratio would greatly
benefit Abraxas in the public markets and consequently, benefit all of our
shareholders. At present, approximately 50% of our budget consists of PUD
projects while another 20% represent probable and possible projects. We will
begin the year by keeping our company-owned workover rigs busy on several
re-entry / re-completion projects in West Texas, while we secure larger drilling
rigs for grass roots and deeper projects", commented Bob Watson, President and
CEO.
Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas
exploitation and production company with operations in Texas and Wyoming.
Safe Harbor for forward-looking statements: Statements in this release looking
forward in time involve known and unknown risks and uncertainties, which may
cause Abraxas' actual results in future periods to be materially different from
any future performance suggested in this release. Such factors may include, but
may not be necessarily limited to, changes in the prices received by Abraxas for
natural gas and crude oil. In addition, Abraxas' future natural gas and crude
oil production is highly dependent upon Abraxas' level of success in acquiring
or finding additional reserves. Further, Abraxas operates in an industry sector
where the value of securities is highly volatile and may be influenced by
economic and other factors beyond Abraxas' control. In the context of
forward-looking information provided for in this release, reference is made to
the discussion of risk factors detailed in Abraxas' filings with the Securities
and Exchange Commission during the past 12 months.
FOR MORE INFORMATION CONTACT:
Barbara M. Stuckey/Director of Corporate Development
Direct Telephone 210.757.9835
Main Telephone 210.490.4788
bstuckey@abraxaspetroleum.com
www.abraxaspetroleum.com