Abraxas Petroleum (AXAS) Issues Update on Eagle Ford, Bakken Plays

Abraxas Petroleum (NASDAQ: AXAS) provided the following operational update on the Company’s Eagle Ford and Bakken assets.

Eagle Ford

At Abraxas’ Jourdanton prospect in Atascosa County, Texas, Abraxas recently drilled and cased the lateral of the Ribeye 1H at 14,983 feet. The Company is currently drilling the lateral of the Ribeye 2H at 13,850 feet. These two long lateral wells represent the most westerly unit in the prospect and the first to be drilled off a common pad. The two wells are scheduled to be fracture stimulated in late July. Abraxas owns a 100% working interest across the Jourdanton prospect.

At Abraxas’ Cave prospect, in McMullen County, Texas, the Company recently completed the Dutch 1H and the well is flowing to sales at encouraging rates. Following the completion of the Dutch 1H, the previously shut in Dutch 2H was also put back on production. After completing the drilling of the Ribeye 2H, Abraxas will mobilize the drilling rig to drill the second two well pad at Cave in the Dutch 3H and Dutch 4H. Abraxas holds a 100% working interest in the Dutch 1H, 2H, 3H and 4H.

At Abraxas’ Dilworth East prospect, in McMullen County, Texas the Company recently completed the R. Henry 2H and the well is flowing to sales at encouraging rates. Abraxas holds a 100% working interest in the R. Henry 2H.

Williston Basin

At Abraxas’ North Fork prospect, in McKenzie County, North Dakota, the Jore Federal 1H, completed in the Three Forks, averaged 1,037 boepd (840 barrels of oil per day, 1,183 mcf of natural gas per day)(1) over the well’s first 30 days of production. The Jore Federal 2H, completed in the Middle Bakken, averaged 833 boepd (660 barrels of oil per day, 1,039 mcf of natural gas per day)(1) over the well’s first 30 days of production. The Jore Federal 4H, completed in the Middle Bakken, averaged 975 boepd (790 barrels of oil per day, 1,112 mcf of natural gas per day)(1) over the well’s first 30 days of production. These three new wells share the same pad as the Jore Federal 3H, which was completed in the Three Forks in October 2012. The four Jore Federal wellbores are 660 feet apart and 1,320 feet apart in same reservoir. All three of the recent Jore wells were constrained on a smaller than normal choke to minimize flaring while the Company’s third party gas processor debottlenecks their gathering system. On the Ravin West pad, Abraxas recently completed the drilling and casing of the Ravin 4H, 5H, 6H and 7H. The four Ravin wells, scheduled to be fracture stimulated in late July, will test 660 foot spacing in the Middle Bakken. Raven Rig #1 was successfully mobilized to the Stenehjem pad where the Company will add the Stenehjem 2H, 3H and 4H to the existing Stenehjem 1H. The four wellbores will be 330 feet apart and alternate between the Middle Bakken and Three Forks. Abraxas owns a working interest of approximately 76%, 51% and 73% in the Jore Federal, Ravin West and Stenehjem wells, respectively.

Bob Watson, President and CEO of Abraxas, commented, “Our drilling success continues with the addition of three solid Bakken producers and two encouraging wells in the Eagle Ford. We look forward to updating the market with the results of our first long lateral two well pad at Jourdanton and our first downspacing test in the Bakken.”

(1) The production rates for each well do not include the impact of natural gas liquids and shrinkage at the processing plant and include flared gas.

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