Abraxas Petroleum Provides Adjusted Q4 and FY15 Production Outlook

Abraxas Petroleum (AXAS), an independent energy company, said late Monday that it is updating its production guidance for Q4 and fiscal year 2015.

The company said that it is adjusting its Q4 estimated volumes to 6,700 – 6,800 boepd, citing weather and offsetting fracture stimulations as factors that contributed to higher than anticipated well downtime during the quarter. Service delays, due to weather and availability, extended the completions of the Cat Eye 1H and Stenehjem 2H, 3H and 4H by several weeks. AXAS also elected to delay the fracture stimulation of the Grass Farm 2H until service costs better reflect the current commodity price environment. The curtailment of the Stenehjem wells due to the third party takeaway constraints mentioned above further impacted anticipated Q4 volumes. Despite the operational issues and completion postponements, the company anticipates its productive capacity to reach its forecasted exit rate of 8,500 boepd in the coming weeks when the Stenehjem wells are all flowing to sales.

The company also said that for 2015, it anticipates average yearly volumes (at the midpoint of guidance) will still increase about 26% over 2014 expected volumes, despite a 72% reduction in capital expenditures year over year. Production is expected to be 7,200 – 7,300 boepd. Shares are down 0.01% at $2.56 in late trading, with a 52-week range of $2.33 – $6.45.

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