Attached files
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|---|---|
| 8-K - FORM 8-K - ABRAXAS PETROLEUM CORP | axasjanuary.htm |
January 2013
Exhibit 99.1
2
Forward-Looking Statements
The information presented herein may contain predictions, estimates and other
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although
the Company believes that its expectations are based on reasonable
assumptions, it can give no assurance that its goals will be achieved.
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although
the Company believes that its expectations are based on reasonable
assumptions, it can give no assurance that its goals will be achieved.
Important factors that could cause actual results to differ materially from those
included in the forward-looking statements include the timing and extent of
changes in commodity prices for oil and gas, the need to develop and replace
reserves, environmental risks, competition, government regulation and the
ability of the Company to meet its stated business goals.
included in the forward-looking statements include the timing and extent of
changes in commodity prices for oil and gas, the need to develop and replace
reserves, environmental risks, competition, government regulation and the
ability of the Company to meet its stated business goals.
3
Corporate Profile
Shares outstanding(1)……............... 93.3mm
Institutional(2)…………........... ~54%
Insider………………………......... ~13%
Market cap(3) ……………………...........$188mm
Bank debt net of cash(1)……….........$131mm
PV-10(4)……………………………….........$271mm
$1EV/BOE(1,3,4)…………………………..........$11.31
(1) As of 9/30/12; production inclusive of Blue Eagle interest
(2) Per Thomson Reuters
(3) As of 12/4/12
(4) As of 6/30/12 inclusive of Blue Eagle interest and CANAXAS. Excludes Nordheim disposition. Uses 6/29/12 NYMEX flat pricing
(5) Based on mid year reserves excluding Nordheim and 3Q12 production annualized; inclusive of Blue Eagle
Proved Reserves(4).………….........29.3mmboe
% Oil/Liquids……………… ~56%
% Proved developed….. ~50%
% Operated PV-10……… ~94%
Production(1).…………….…………~4,177boepd
R/P Ratio(5)…………………………..............19.2x
2012/13E CAPEX………………… $70mm
NASDAQ: AXAS
4
Investment Thesis
Ø Exposure to “core” acreage in top U.S. oil resource plays
Ø Significant exposure to emerging NAM oil resource plays
Premier
Acreage
Acreage
Value +
Growth
Growth
Ø Low decline legacy production
Ø “Manufacturing” model in repeatable resource plays leads to visible growth
Proven
Operator
Operator
Ø Company owned rig in Bakken = pad drilling = efficiency gains
Ø Deep technical and G&G staff
Oil
Weighted
Weighted
Ø 53% crude oil and liquids weighted(1)
Ø Percentage likely to grow meaningfully given capital focus
(1) As of 06/30/12; production inclusive of Blue Eagle interest; excludes Nordheim
5
Business Plan - 2013
§ FOCUS + DELEVER + GROW
§ ReFOCUS Portfolio and CAPEX on Highest Returning Basins
§ Currently: Williston, Eagle Ford, PRB, Permian
§ DELEVER: Actively Pursue Divestitures
§ Properties trading above internal assessment of fair value
§ Lack of scale/high margin production
§ Exemplified by recent transactions for ~$22mm
§ Reduce leverage and maintain that profile
§ Target Debt/EBITDA < 2.0x by YE13 (1)
§ GROW: The Outcome of Sound Investment Decisions
§ Bakken/TFS:
§ Accelerate with company owned drilling rig
§ Eagle Ford:
§ Mobilize rig to commence continuous drilling program
(1) Excluding building mortgage and rig loan which are secured by the building and rig, respectively. EBITDA definition per bank loan agreement (excludes Rig EBITDA)
6
Low Risk Development
Focus On Four Core Positions in Premier Oil Resource Plays Predominately HBP
§ Williston: 23,000+ net acres; Bakken, Three Forks
§ Eagle Ford: 7,300+ net acres: Eagle Ford, Buda
§ PRB: 17,000+ net acres; stacked potential
§ Permian: 40,000+ net acres: conventional & stacked pay opportunities
Premier Positions in Emerging Oil Resource Plays
§ Permian: 40,000+ net acres; exposure to numerous emerging plays
§ Canada: 40,000+ net acres Duvernay/Pekisko
Low Risk Conventional Development
§ Williston Basin: Red River/Duperow
§ Permian Basin: Spires Ranch - hz Strawn
§ Permian Basin: Delaware Basin - dry gas
7
Proved Reserves (MMBoe)(1): 29.3
• Proved Developed: 50%
• Liquids: 56%
• Operated (by PV10): 94%
Abraxas Petroleum Corporation
High Quality Assets
Alberta, Canada
(1) Net proved reserves as of June 30, 2012, including AXAS’ share of Blue Eagle’s proved reserves, Canada; exclusive of Nordheim
Williston:
Bakken / Three Forks
PRB:
Niobrara, Turner
Midland/Eastern Shelf:
Emerging Cline, Wolfcamp
Eagle Ford Shale
CBP: Conventional
Delaware Basin:
Emerging Bone Spring, Wolfcamp
Rocky Mountain
Permian Basin
Gulf Coast
Canada
Pekisko
Eastern Shale
Basin: Duvernay
Basin: Duvernay
8
Reserve / Production Summary
Production(2) - 4,177 Boepd
(1) Net proved reserves as of June 30, 2012, including AXAS’ share of Blue Eagle’s proved reserves per the September 2012 dissolution and exclusive of Nordheim
(2) Daily net production for the quarter ended September 30, 2012, including AXAS’ share of Blue Eagle’s production
Production Mix
9
AXAS Production
(1) Includes AXAS’ share of Blue Eagle’s production (50% in Q1 and Q2 2011, 41% in Q3 2011 and 35% in Q4 2011, Q1 2012 and Q2 2012)
Oil/NGL % 34% 35% 36% 39% 43% 44% 48% 48% 52% 53% 53%
Production Net to AXAS(1)
61% Liquids
Growth
Since 1Q10
Growth
Since 1Q10
10
(1) Proved, Probable PV-10 net of Nordheim divestiture. Proved, Probable, Possible PV-10 based off mid year internal reserves and 6/29/12 flat pricing
(2) Building, Rig & Other PP&E (workover rigs, misc equipment, etc) based off net book value
(3) Tax assessment of AXAS surface ownership in 162 acres Coke, TX; 613 acres Scurry, TX. Purchase price of AXAS 1,769 acres in San Patricio, TX; 12,178 acres Pecos, TX; 582 acres McKenzie, ND & Condos; 50 acres DeWitt, TX.
(4) Bank debt as of 9/30 less assumed $22mm in proceeds from Alberta Basin and Nordheim divestitures. WC Deficit as of 9/30 - excludes derivative assets and liabilities
Base NAV
11
2013 Capital Budget/Guidance
(1) Inclusive of [141] net acre pending acquisition at WyCross
|
Project Area
|
|
Net Acres
|
|
2013 Drilling
Program |
|
2013 Net Capital
($MM) |
|
|
|
|
|
|
Gross
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Net
|
|
|
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Bakken / Three Forks
|
|
23,320
|
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12.3
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6.5
|
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$47.7
|
|
Eagle Ford Shale (1)
|
|
7,306
|
|
11.0
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2.6
|
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$21.6
|
|
PRB
|
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17,800
|
|
0.0
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0.0
|
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$0.0
|
|
Permian Basin
|
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41,131
|
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2.0
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1.9
|
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$.7
|
|
Other
|
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50,000+
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0.0
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0.0
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$0.0
|
|
Total:
|
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120,000+
|
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25.3
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11.0
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$70.0
|
2013 Production Estimate: 4,900-5,200 BOEPD (21-28% growth)
•Variance due to timing of completions
•Does not take into effect the impact of any potential asset sales other than Nordheim
12
AXAS Hedges
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2013
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2014
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2015
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2016
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OIL - weighted average price
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$86.70
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$94.05
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$85.00
|
$84.00
|
|
% of 3Q Oil Production
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~71%
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~59%
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~50%
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~47%
|
|
$MM Revenue Protected
|
$42mm
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$37mm
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$29mm
|
$27mm
|
|
|
|
|
|
|
NYMEX-based fixed price swaps:
13
Bakken / Three Forks
|
County
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McKenzie
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Richland
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Burke
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Sheridan
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Billings
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Divide
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Roosevelt
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Williams
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Stark
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Dunn
|
|
Net Acres
|
5,535
|
5,551
|
3,255
|
2,261
|
1,879
|
1,442
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1,367
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1,239
|
563
|
123
|
|
Percent Operated
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55%
|
30%
|
79%
|
0%
|
0%
|
0%
|
47%
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0%
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0%
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0%
|
|
Net Bakken Locations (1)
|
17
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17
|
10
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7
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6
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5
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4
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4
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0
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1
|
|
Net TFS Locations(1)
|
17
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17
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10
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7
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6
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5
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4
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4
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2
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1
|
(1) Unrisked locations based on eight wells (four Bakken and four Three Forks) per 1,280 acre units;
§ 109,658 Gross/23,320 Net Acres
§ ~100% held by production
§ Drilling Inventory:
§ D&M Risked/Identified:
§ 409 gross / 64 net
§ $34.0 MM budget
§ Operated
§ Pad-drilling
§ Company owned rig
§ 2013 to date
§ Drilling: 4 gross (1.49 net)
§ Completing: 2 gross (.98 net)
§ Non-operated wells
§ 2013 to date
§ 3 gross (.10 net)
14
Operated Bakken - North Fork
§North Fork
§ 3,314 Net Acres
§ D&M Risked Operated Locations:
§ Drilled: 4 Gross / 2.6 Net
§ Completing: 1 Gross / .5 Net
§ Remaining: 26 Gross / 12 Net
§Recent Operated Activity:
§ Ravin 26-35 1H:
§ Cum. production (23 mos): 126 Mboe
§Stenehjem 27-34 1H:
§ Cum. production (15 mos): 126 MBoe
§Jore Federal 2-11 3H:
§ Cum. production (1.5 mos): 19.6 MBoe
§Ravin 26-35 2H:
§ On production
§Ravin 26-35 3H:
§ Completing
§Lillibridge 1H, 2H, 3H & 4H:
§ Drilling
15
Operated Bakken - Harding
Harding
§ 2,886 Net Acres
§ Richland, MT and McKenzie, ND Counties
§ D&M Risked Operated Locations:
§ Middle Bakken: 27 Gross / 8.2 Net
§ Three Forks: TBD
Recent
Slawson
Activity
Slawson
Activity
Current Non -
Op Available
for Swap
Op Available
for Swap
16
Bakken / Three Forks
Significant Long Term Investments:
§Raven Drilling:
§ 2000 HP walking rig
§ Dedicated AXAS crew
§ Company owned man camp
§ Allows for significant efficiency gains
§North Fork Water System
§ Will service all North Fork wells
§ Enables AXAS to achieve cost savings via
centrally located frac pond & disposal well
centrally located frac pond & disposal well
17
Bakken / Three Forks
18
Eagle Ford Shale
§ WyCross McMullen County:
§ ~25% working interest
§ 6,139 gross / 1,035 net(1)
§ Eagle Ford: Volatile Oil
§ Jourdantan: Atascosa County
§ 100% working interest
§ ~4,467 gross / 4,399 net
§ Eagle Ford/Buda: Oil
§ Yoakum: DeWitt county
§ 100% working interest
§ 2,097 gross / 1,908 net
§ Eagle Ford: Dry Gas
§ Planned Activity:
§ Continuous drilling program
§ Cobra B1H: On production
§ Mustang 1H: On production
§ Corvette C1H: Completing
§ Gran Torino A 1H: Drilling
§ Economics (WyCross):
§ EUR 575mmboe
§ $8.0mm D&C
(1) [141] acres pending acquisition
19
Eagle Ford Shale - Core Area
WyCross
§Core of the volatile oil window
§6,139 Gross/1,035 Net(1)
§Locations (assuming 80s)
§ 77 Gross / 19 net
§Cobra 1H
§ Cum. production (8 mos): 130 MBoe
§ 95% Oil / NGLs
§Cobra B 1H
§ Cum. production (1 mos): 17.7 MBoe
§ 95% Oil / NGLs
§Mustang 1H
§ On production
§Corvette C 1H
§ Completing
§Gran Torino A 1H
§ Drilling
(1) [141] acres pending acquisition
20
Eagle Ford - WyCross
21
PRB - Stacked Pay Opportunities
Converse / Niobrara Counties, Wyoming
§ Gross / Net Acres:
§ 20,720 / 17,800
§ Primarily in Converse and Niobrara
Counties
Counties
§ ~2,100 net acres in Campbell County
§ ~90% held by production
§ Historical Activity:
§ 13 wells (2000 - 2011)
(8 horizontal / 5 vertical)
§ Recent Activity:
§ Hedgehog State 16-2H (Crossbow)
§ Restricted rate - 400 Boepd
§ > $5.00 per Mcf w/ NGLs
§ 100% working interest
§ Cum (7 months): 88 MBoe
§ 49% Oil / NGLs
Brooks Draw:
Sage Grouse 3H:
(Cum Oil 25 MBbl / 50 MBbl EUR)
Prairie Falcon 3H (Niobrara)
Recent Industry Activity:
74 Permits
8 Completions
Porcupine Field:
Hedgehog State 16-2H (Turner)
22
PRB - Hedgehog State 16 - 2H
23
Permian Basin - Spires Ranch
§ 5,600 Gross/Net Acres
§ Recent Activity:
§ Spires 89-1H
§ Cum. Prod (1 mos): 7.8 mboe
§ 86% oil; 9% NGLs
§ Economics:
§ D&C Cost: $1.8 MM
§ EUR: 145 MBoe
§ 54% Oil / NGLs
AXAS owns 100% working interest in Spires Ranch leasehold
5,600 net acres
Nolan
County
County
Spires 89-1H
24
Permian Basin - Emerging Hz
Spires Ranch (Nolan County)
§Monitoring industry activity
§Geologic evaluation
§Logged shales through Spires 89 1H
Millican Reef (Coke County)
§Monitoring industry activity
§Geologic evaluation
25
Canada - Duvernay
Duvernay :
§ Net Acres: 46,000 (100% WI)
§ Crown: 32 Sections; five year leases with no expiree
2016/2017
2016/2017
§ Farm-out: 36 Sections; four year term
§ Represents a continuous, self sourced resource contained in a
shaley organic rich low permeability reservoir
shaley organic rich low permeability reservoir
§ Shale assessment and productivity expectations developed
based on a review of analogues (i.e. Eagle Ford, Kaybob,
Pembina/ Willesden Green)
based on a review of analogues (i.e. Eagle Ford, Kaybob,
Pembina/ Willesden Green)
§ All critical shale parameters point to the Duvernay being an
excellent source and reservoir rock
excellent source and reservoir rock
§ Available rock and completion data point to Canaxas lands
containing volatile oil hydrocarbons in place
containing volatile oil hydrocarbons in place
§Planned Activity:
§ Drill vertical pressure test
§ Actively marketing for JV/sale with Pekisko (~150 boepd) as a
commingled package
commingled package
Alberta, Canada: Eastern Shale Basin
Recently Drilled
Neighboring Well
Neighboring Well
26
Canada - Duvernay
27
Canada - Duvernay
28
Near-Term Drilling Catalysts
(1) Significant downtime during 30 day IP month
(2) Restricted rate
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Scheduled IP Month
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Formation
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Basin/Field/Well
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AXAS WI
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IP Date
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30 Day IP
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Notes
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Williston Basin
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April 2013
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Bakken/TFS
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Lillibridge 1H-4H
|
37%
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April 2013
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NA
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PAD Development Drilling
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January 2013
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Bakken
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Ravin 26-35 2H
|
49%
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January 2013
|
NA
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On Production
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January 2013
|
Bakken
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Ravin 26-35 3H
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49%
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January 2013
|
NA
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Completing
|
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October 2012
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TFS
|
Jore Fed 02-11 3H
|
76%
|
October 2012
|
510
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Cum Prod. (1 mos) 15.3 mboe
|
|
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PRB
|
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April 2012
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Turner
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Hedgehog State 16.2H
|
100%
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April 2012
|
442 (2)
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Cum. Prod. (6 mos) 79 mboe
|
|
|
|
|
|
|
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Eagleford
|
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|
|
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January 2013
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Eagleford
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Gran Torino A 1H
|
19%
|
January 2013
|
NA
|
Drilling
|
|
January 2013
|
Eagleford
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Corvette C 1H
|
25%
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January 2013
|
NA
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Completing
|
|
December 2012
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Eagleford
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Mustang 1H
|
19%
|
December 2012
|
NA
|
On Production
|
|
November 2012
|
Eagleford
|
Cobra B 1H
|
25%
|
November 2012
|
592
|
Cum. Prod (1 mos) 592 mboe; 95% Oil/NGLs
|
|
March 2012
|
Eagleford
|
Cobra 1H
|
25%
|
March 2012
|
957
|
Cum. Prod. (7 mos) 120 mboe; 95% Oil/NGLs
|
|
|
|
|
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Permian Basin
|
|
|
|
|
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September 2012
|
Strawn
|
Spires Ranch 89 1H
|
100%
|
September 2012
|
195
|
Cum. Prod. (1 mos) 7.8 mboe; 95% Oil/NGLs
|
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Scheduled IP Month
|
Formation
|
Basin/Field/Well
|
Gross/Net
|
IP Date
|
30 Day IP
|
Notes
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Williston Basin
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|
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2013
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Bakken/TFS
|
Various
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0/0
|
NA
|
NA
|
Various operators; online to date
|
|
2013
|
Bakken/TFS
|
Various
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2/.05
|
NA
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NA
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Various operators; w/o completion
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2013
|
Bakken/TFS
|
Various
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2/.08
|
NA
|
NA
|
Various operators; w/o drilling rig
|
29
NASDAQ: AXAS