Brief: Abraxas lowers 2016 budget to $35 mln from $40 mln

Abraxas Petroleum

08/11/2016 21:15

Nov 8 (Reuters) - Abraxas Petroleum Corp  AXAS.O  
    * Abraxas provides operational, financial and divestiture 
update; addresses 2016 and 2017 guidance and capital budget 
    * In Permian basin, Abraxas now expects to close sale of 
Hudgins ranch in December 2016 
    * Borrowing base was recently redetermined to $115 million 
    * Production for Q3 of 2016 averaged 5,955 boepd 
    * Given current service costs and attractive economics, 
Abraxas plans to restart company's Bakken rig in December, 2016 
    * Lowering company's 2016 capital budget from $40 million to 
$35 million largely due to service cost savings 
    * Midpoint of 2016 production guidance remains unchanged at 
6,200 boepd 
    * For 2017, Abraxas anticipates drilling expenditures to 
approximate cash flow 
    * Lowering lease operating expense guidance by $0.75/boe for 
2016 
    * Sees 2017 total production 7,000 boepd to 7,400 boepd 
    * Sees 2017 capex $60 million 
    * Signed a definitive agreement to divest company's brooks 
draw assets in powder river basin assets for approximately $11.3 
million 
    * Continues to market company's remaining assets in powder 
river basin. 
 
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