SAN ANTONIO--(BUSINESS WIRE)--Abraxas Petroleum Corporation (NASDAQ:AXAS) today announced reserves as of December 31, 2011 which reflect a 45% increase in oil and NGLs over reserves as of December 31, 2010.
Abraxas’ total proved reserves, including its equity share of Blue Eagle Energy, LLC’s (“Blue Eagle”) proved reserves, at December 31, 2011 were 29.0 MMBoe. In addition, DeGolyer and MacNaughton, Abraxas’ independent reservoir engineering firm, estimated 24.2 MMBoe of probable reserves and 16.5 MMBoe of possible reserves on certain properties.
Net capital expenditures for development of our properties in 2011 were approximately $56.9 million. Overall 4.6 MMBoe of proved reserves were added through extensions, discoveries and revisions. Production for 2011 was 1.4 MMBoe. Finding and development cost for 2011, including future development costs of $67.5 million which was the amount that exceeded the year-end 2010 estimated costs, was $17.41 per Boe. Reserve replacement was 521% for 2011. The finding and development cost and reserve replacement calculations exclude approximately 15.2 Bcf of proved gas reserves that were re-classified as a result of the SEC’s 5 year PUD rule that went into effect at the end of 2009.
The following table contains certain proved reserve information at year-end 2011:
| Total Proved Reserves (MMBoe) (a) | 29.0 | ||
| Reserve Replacement | 521% | ||
| Finding Cost (F&D) per Boe | $17.41 | ||
| Oil / NGL % | 53% | ||
| Proved Developed % | 53% | ||
| Operated % | 86% | ||
| Reserve Life Index | 21.2 years | ||
The following table provides a reconciliation of proved reserves from December 31, 2010 to December 31, 2011 in MMBoe:
| Proved Reserves at 12/31/10 (a) | 26.6 | ||||
| Extensions / Discoveries | 4.4 | ||||
| Acquisitions / Divestitures | — | ||||
| Revisions | 0.2 | ||||
| Decrease in Blue Eagle Equity | (0.8 | ) | |||
| Production | (1.4 | ) | |||
| Proved Reserves at 12/31/11 (a) | 29.0 | ||||
| Present Value, Discounted 10% - Future Net Cash Flow (“PV10”) ($MM) (b) |
$ |
326.3 |
|||
The following table contains probable and possible reserve information at year-end 2011 on certain properties:
| Total Probable Reserves (MMBoe) (a) | 24.2 | |||
| PV10 ($MM) (b) | $ | 154.7 | ||
| Total Possible Reserves (MMBoe) (a) | 16.5 | |||
| PV10 ($MM) (b) | $ | 52.0 | ||
| (a) | Includes Abraxas’ equity share of Blue Eagle’s proved reserves. | |
| (b) | Calculated utilizing NYMEX benchmark prices for the 12-month first-day-of-the-month average for 2011 of $96.19 per barrel and $4.16 per Mcf and adjusted for appropriate differentials. | |
“We made a lot of progress in 2011 with respect to increasing our percentage of oil and NGLs by 45% and increasing our percentage of operated properties to 86%. We look forward to continued reserve and production growth going forward,” commented Bob Watson, Abraxas’ President and CEO.
Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas exploration and production company with operations across the Rocky Mountain, Mid-Continent, Permian Basin and onshore Gulf Coast regions of the United States and in the province of Alberta, Canada.
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.