Abraxas Update -- February 16, 2019

Link here.

Either I missed this or had forgotten.

Also, here at SeekingAlpha.

Abraxas is budgeting $95 million for capital expenditures in 2019.

This is expected to result in 11,000 BOEPD in average production during the year and perhaps slightly positive cash flow at mid-$50s WTI oil.

Abraxas is looking at options for its Bakken assets, which have limited inventory remaining, but currently provide the majority of the company's production and cash flow.

The decision on what it does with the Bakken assets will have a significant impact on Abraxas's estimated value.

4,000 acres in the Bakken and it provides the company's production and cash flow. I think that simply incredible. I guess I find it even more incredible the company is considering selling their Bakken assets.

Abraxas will drill 4.3 net Bakken wells in 2019.

Abraxas website here.

January, 2019, corporate presentation here.

• 2019 CAPEX: 
• Permian - Delaware (WTX): 50%
• Bakken: 40%
• Bakken:
• 4,000 net acres in tier 1 locations, McKenzie County
• current net production, 7,000 boepd
• Stenehjem
• Ravin
• Lillibridge
• Yellowstone
• Jore Federal
• Frack strategy: generation 5
• 60 stages
• 850 pounds/foot (10,000 feet = 8 million lbs/frack)
• EUR type curves: now up to MB Gen 5
• EUR type curves: now up to TF Gen 5
• CWC: $7.0 million (same for MB and TF)

Sale?

• at $5,000/acre = $20 million
• at $10,000/acre = $40 million 

Frack strategy history:

Over at "Bakken operators": Abraxas

• Filloon on AXAS, May 8, 2017; 
• November 6, 2013: sells 2,563 non-producing Bakken acres in its Fairview Prospect, Montana (Richland County) for $10.9 million ($4,250/acre)
• August, 2013: sees 4,600 - 4,800 boepd December, 2013, exit rate;
• sells 13,500 net acres; non-operated assets; to NRP; $35.5 million -- June 17, 2013
• 4Q12e: 4,300 - 4,500 boepd
• Operations in both the Bakken and Eagle Ford
• 21,000 net acres in the Bakken (ND + MT); 20,853, SeekingAlpha, 2011
• BEXP presentation says Abraxas has 20,853 net acres
• Nesson: 2,600 net acres; nice acreage
• Carter: 3,200 net acres; northeast of best Bakken; +/- value
• North Fork: 3,200 net acres; nice acreage
• Elkhorn Ranch: 2000 net acres; southwest North Dakota
• Elm Coulee: 440 net acres; where it all started in 2000
• Harding: 5,800 net acres; Williston area; nice area
• Sheridan: 3,000 net acres; Montana northwest of Williston (quality?)