"We lost less than two quarters of production; saved a lot of Cash and now will see Production in full force in the third quarter. (so said pocilujko) another way to say this is almost one half year.
One Half year:
In the Bakkens, AXAS doesn't complete any Wells for at least the 1st quarter because of the weather effect on Completion.
Basically AXAS lost less than a quarter of production because of Completion.
also note that AXAS hedge less than one half of their Oil Production so that higher prices will flow directly to AXAS on most of the production.
Someone asked what the Cost of the Hedges. Most Collar Hedgse are known as Costless.
AXAS makes out if Price of Oil is below the bottom Price.(Floor) of $55 in Year 2015.
AXAS pays anytime Oil Prices hit over $70(Collar) in Year 2015.
posted on Investor Village, Message #8481; "AXAS" Message Board.
Drilling the Lateral started May 13.
When the STEN-RAV #1H is finished, the Ravin #8H will be next before Completions is started on the Three Well Pad.
" i just think it was bad to invest new money and let your production slide like they did when we are still in a loose mkt"
What a idiot:
You prefer AXAS to spend a fortune to complete Wells to keep up production.
AXAS was smart to hold opff until the Cost drop 40% to completed these Wells.
Two Eagle Ford Wells have been completed. Four Jore Federal Wells in North Dakota have started completion.
We lost less than two quarters of production; saved a lot of Cash and now will see Production in full force in the third quarter.
AXAS is now drilling the lateral second Well of the three Well pad in North Dakota.
Watson and AXAS are doing the right things while you post #$%$.
Capital expenditures, including purchases
and development of properties $12,400,000.
ABRAXAS Acquired 210 Net Acres.
Abraxas drilled all quarter.
Abraxas cost per Acre is under $5,000 which is very cheap in this location.
Drilling Status on Bakken Wells:
"In North Dakota, our company-owned rig continues to impress, so much so that we will now drill more wells in 2015 than originally planned. We're just drilling them quicker, which is good. And due to service cost savings, we can still accommodate these additional wells and only increase our capital expenditure budget from $54 million to $55 million, which should still generate free cash flow.
Specifically, the rig is on a 3-well Ravin Northwest pad in McKenzie County. The Stenehjem 5H should reach TD today at about 21,000 feet, a liner will be run, the rig will walk to the Sten-Rav 1H to drill its lateral. Intermediate casing has already been set at about 11,000 feet. And then on to the lateral for the Ravin 8H.
The timing of the completion of these wells will depend on service costs, oil prices and adequate gas capture. We need to make sure, because of the new NDIC rules, that we can sell 100% of our gas. The rig will then move to an 11-well Stenehjem pad to drill the first 6 of the 11 wells, and then probably move to an additional pad after that, hopefully by the end of the year."
"But without these issues, we would have been well above our Q1 guidance. Last year, we made the decision to not frac any wells, late last year, until costs came down at least 35%. We ended up with 9 drilled and noncompleted wells in inventory: 2 in the Eagle Ford, 4 in the Bakken and 3 in the Permian. Costs have now come down in excess of 35%, so we've made the election to go ahead and frac all 9 wells here during the second quarter. That process is underway in the Eagle Ford. Our Grass Farm 2H was successfully fracked with a 30-stage frac that was completed this past weekend and the well is now on flowback.
And we -- in the Eagle Ford, we expected about a 38% reduction in frac costs, and then in the Grass Farm well, we did at least that or perhaps a little bit better.
We're currently fracking the -- our Henry 1H with a 34-stage frac. It's underway. Both of these wells we own 100% of and both of these wells involve a new frac design for us, essentially more but shorter stages and more frac sand per foot of lateral. We've increased from 1,500 pounds to about 2,000 pounds.
Up in the Bakken, we've got 4 33-stage fracs scheduled to commence about May 20 on our ore well Jore West pad, where we own about a 76% working interest. And we expect frac savings of about 50% from these wells.
Out in West Texas, we have 3 Clearfork wells scheduled to be fracked within the next 2 weeks, and we have about a 90% working interest in those 2 wells."
from the transcript of 1st quarter Conference Call:
"In January, we are serviced by OKEOK, their gathering system, into their Bear Den plant. The plant had an issue. Their sales line hydrated off, it basically froze off and we went to a 100% flare"
" In addition to that, the Regency gas plant that we use out in West Texas and the Delaware Basin also went down for maintenance for about 6 weeks during the latter part of the quarter and into the second quarter."
"Good news, both issues are now fixed. The Bakken issue was fixed in March, and -- although we still had some periodic timeline pressure issues. And the West Texas Regency plant went back on this past weekend, so it will have some impact on the second quarter."
3Rd Quarter will have NINE New Wells Producing.
Also existing Wells that were shut in while the New Wells are fractured and completion will be coming back on production.
Note #1: The Four Bakken Wells and Two Eagle Ford Wells have their highest Production is in its first three months (3rd Quarter).
Note #2: The Shut-In Wells coming back on Production will have built up pressure and will initially start will higher production.
Nice and short call.
1. Good news is that Abraxas is fracturing and Completing nine Wells.
a. Four Bakkens
b. Two Eagle Fords
c. Three Permian Wells.
2. Bad News; is that Abraxas needs to shut in many Wells as not to chance interfering with the New Completions.
3. When drilling is completed on the present three Wells, Abraxas will begin drilling the Six Wells Permitted..
4. Abraxas will begin drilling Wells in Wyoming in Late Summer with some one else Rigs.
5. If the Permian Wells are good, Abraxas will do more Permian Wells Fracturing and Completion..
6. Looks like the fracturing and Completion Costs have bottom.
7 Looks like more drilling will happen in the Bakkens:
a. The Six Well Permits is part of a Eleven Well Pad.
b. Abraxas will begin drilling in the new section they acquired; mainly in the State Owned Section; the Federal part takes longer to get permits.
Long ago I posted that you are an idiot.
There is no problem with Natural Gas on Abraxas part.
Third party providers were the cause of Natural Gas delivery problems.
If you bother to listen to the Conference Call, that is all fix now.
In the Second quarter, Abraxas needs to sut down may Wells so they can complete NINE More Wells. Third and Fourth Quarter will be a big Upside in Production as the Nine Wells are Producing and the shut in Wells come back on line.
This Message Board is now being target of traders trying to push AXAS down.
AXAS is doing better than I thought they would be at tis time.
1. With Well Completion Costs down more than expected; AXAS went ahead and completed the Grass Farm Eagle Ford Well.
2. AXAS will now start Completing the R. Henry Eagle Ford Well.
3. Later this month, AXAS will start completion on the Jore Federal Four Bakken Wells.
4. AXAS increased their Lease acreage and Working Interest in their great Bakken acreage.
5. Despite the Acquisition of more Bakken Leases; AXAS CAP X went up ony $5 Million due to the lower cost of completing wells. AXAS timing in holding off Completions is really paying off.
Beware of the traders, they only concern is to make profits at your expense.
Month..................Barrels of Oil............MCF of Natural Gas
1. Abraxas is spreading their CAP EX costs nicely.
2. In the 1st quarter; all their was drilling costs.
3. In the 2nd quarter, Abraxas will do completions on Six Wells. Completion Costs are approx. half the Well's Cost.
4. Abraxas will continue drilling but only with its Company Owned Rig.
a. Saves on CAP EX.
b. Keeps their very experienced drilling rig crew stable and saves on drilling costs.
5. Additional Cash Flow will start in May.
Very good plan by Abraxas; getting assets(drilled Wells) to produce and keeping Asset (Rig) busy at all times.
Remember, Bakken and Eagle Ford Wells are long lives assets producing Cash Flow for many years.
1. Completion Costs had come down.
2. Abraxas will began Completion on the 4 Well Pad; the Jore Federal #5H, 6H,7H, & 8H.in late May.
3. Abraxas will begin shortly to Complete the Two Eagle Ford Wells; Grass Farm #2H & R. Henry #1H;
4. When the Raven Rig finishes drilling the three Wells in the Bakken; the timing might be right to bring the Rig
down to drill five Wells in the Power River area.
5. Abraxas did some trading of leases with a large Oil Company to get more drilling units sites in the Bakken.
6. Costs are now down to $7 Million per Bakken Well to drill and Complete.
7. We should see some new production starting in May, 2015.
I don't tell investors when to buy, hold, or sell a stock.
I will tell you that AXAS looks to one of best Oil & Gas Companies out there.
1. Very low Debt.
2. Super producing leases in the Bakkens.
3. Very Good Eagle Ford Wells.
4. I think AXAS gets Brent Pricing on some of its Texas Wells.
5. Low costs in drilling both Bakken and Eagle Ford Wells.
6. They have two Eagle Ford Wells drilled and awaiting completion when either Completion Costs go down or Oil Prices go Up.
7. In a months time; AXAS with have Seven Bakken Wells drilled awaiting Completion.
8. Very strong Positive Cash Flow coming in even though Oil Prices are low.
9. Can't wait until AXAS starts drilling in Wyoming; great Oil & Gas production there.