All of sudden this poster has posted loads of negatives try to push AXAS stock price down.
The AXAS stock price falling is directly related to the Oil & Gas Sector is in free fall.
Has the free fall stop? I don't know.
I look at fundamentals; I when back to look at the Bakken Wells.
The AXAS Total Cost to drill and complete the Bakken Wells is $8.5 Million.
Even at today's Crude Prices; all the Bakken Wells(except the New Jore Federal) drills have already payback all its Cost. These Wells are still producing.
AXAS Jourdanton Wells cost $7 Million; the Snake Eye Well is closed to Payback with only six months of Production. This are Long Live Wells.
AXAS is still very profitable and will have a nice 3rd Quarter financial results.
The Investor 71 posters always show up when there is a sudden drop in stock prices. Note; these posters disappear when the Stock Price is going Up.
Should you Buy, Hold, or Sell is based on each person Risk Tolerance.
Best of Luck.
September Cumulative Production was 124,913 Barrels of Oil & 212,337 MCF of Natural Gas.
September Production was 83,330 Barrels of Oil & 152,653 MCF of Natural Gas.
Message #8331 on Investor Village.
"I think most of us are wondering if this company can survive?"
What makes you think that will happen.?
AXAS has very little debt and production is still running strong,
Cash Flow is strong and CAP EX can be cut back.
Abraxas Reserve PV-10 is way higher than its property Valuation on the Balance Sheet; so no Valuation impairment charges.
Where is Bogwa; only Bogwa knows. I hope is health is great and he is enjoy a nice warm cruise somewhere.
Country & Western is very big in Las Vegas at this time.
Do your own Due Diligence.
Page #23 of 10Q:
"(1) The Brent swap was monetized in October 2014 for $0.1 million and replaced with a $85.30 WTI swap for 3,800 Bbl per month for 2015"
Comment: In Lay person terms:
1. Abraxas sold out their Brent Swaps for 2015 for a $100,000 Profit.
2. Abraxas added approx. 126 Barrels per day Swaps at $85.30 for the Year 2015.
1. The Three Stenehjem Wells: So far ; good news; remember these are Thee Forks Formation Wells which normally don't produce as good the Middle Bakken Formation. The delay in the pipeline might turn into a blessing when Crude Prices go up.
2. The Two Dutch Wells are very good like the first two Dutch Wells.
3. If the Cat Eye Well turns out very good; Abraxas Jourdanton South Block has very many drilling locations.
4. The Four Jore Federal Wells being drilled is going smoothly. When Abraxas Completes these Wells starting in April, Completions Costs should have dropped by them.
5. Abraxas 2014 Year End Exit Rate is great, giving Abraxas a nice production rate without spending High CAP EX.
6. With all this new Wells; Proven Reserves should have a nice Big Jump.
7. Also note that Natural Gas is approx. 25% of the Production and Natural Gas Prices are holding steady and will go up with winter weather.
8. Please note, as Rigs drilling for Oil dropped even more, most of these Oil Wells drilled produced a lot of Natural Gas. As Supply of Natural Gas drop, Natural Gas Prices will go Up.
You gave me a good laugh.
An outsider telling the Chief Operating officer how to run his company.
As a former Controller; chief financial officer, I should remind the outsiders that that the Company have management staff meetings where everything is discuss. They also usually have a Quarterly meeting with the Board of Directors to discuss all projects.
The Company publish their CAP EX Budget for the following year but internally they have projected projects for next three years.
The Company also has to be careful to plan projects to use all areas leased within five years so as not to violated SEC Guidelines and have to write down the Assets.
Abraxas has been leader in selling off Assets that are not on their priority list to develop. Abraxas has enough Assets now to keep them busy for at least three years. Abraxas is being smart in getting more leases that are continuous to existing leases.
Abraxas has Hedges of $85 for Year 2015; not $50.
At present time, Abraxas has Positive Cash Flow of $20 Million per Quarter.
Abraxas can cut back on Well Completions(the most cost part of completing a new Well.
Abraxas can also cut out drilling since almost all their Leases are "HELD By Production" except for South Block of Jourdanton.
Also note that Abraxas has Production coming on Board this Quarter from:
1. Dutch #3H H
2. Cats Eye
3 Three Bakken Stenejhem Wells.
Lots of good Stuff:
1. Slide #10:
a. Dutch #3H & Dutch #4H are now Producing
b. Cat Eye #!H is now being Completing.
c. Grass Farm #2H is now waiting for Completion. I wonder what happen to Grass Farm #3H
d. The R. Henry #1H is now being drilled.
2. Bakken; Slide #12
...a. Additional North Fork 2nd and 3rd Bench Three Forks wells potential approved by NDIC(North Dakota Industrial Commission.
b. Additional Lillibridge 2nd and 3rd Bench Three Forks wells potential approved by NDIC
3. Slide #14:
a. The Three Stenehjem Wells are bib=ng Completing.
b. Very Good progress on drilling the 4 Jore Federal Wells.
Posted on Investor Village; Message #8324: "AXAS" Message Board.
AXAS now has three Stenehjem Wells(#2, #3, #4) ready for Completion.
As far as Oil going under $75.00 a Barrel:
Go to page #17 of the 2nd Quarter 10QQ:
Year 2014: ......1,535 Barrels per day ...at $91.87
Year 2015............921 Barrels per day ....at $85.00
Year 2016............948 Barrels per day.....at $84.10
Year 2017............493 Barrels per day.....at $84.18
1. AXAS will pick up a Gain of approx. $6 Million on Hedges in the 3rd Quarter.
2. If Oil stays under $85 at December 31, 2014; AXAs will pick up another $6 Million Gain on Hedges in the 4th Quarter.
Usually when Oil prices go down, Companies cut back on drilling causing Rigs Cost for drilling to go down and Completion Costs also to drop.
AXA will drill where ROI is high.
AXAS has Low Debt and is profitable with Very Good Cash Flow is very able to survive this drop in Oil Prices.
Everyone should do their own Due Diligence and not depend on Bogwa or me for our opinions.
September 15th Press Release;
"Ravin 5H, 6H and 7H have been on production an average of 27 days and on average produced 1,269 boepd (1,015 barrels of oil per day, 1,526 mcf of natural gas per day) (1) per well over that period. The Ravin 4H, which was impacted by a mechanical issue, has been remediated and is scheduled to be fracture stimulated in late September"
North Dakota just released their August Report:
Guess what; the Ravin #4H actually produced 16 days in August:
11,172 Barrels Produced; 10,751 Barrels Sold
17,687 MCF Natural Gas Produced; 9,879 Sold
The Ravin #5H 17,842 Barrels Produced in 25 Days
the Ravin #6H 12,550 Barrels Produced in 20 days
The Ravin #7H 11,191 Barrels Produced in 22 days
Message #8358 on Investor Village; "AXAS" Message Board.
Month.................Barrels of Oil.........MCF of Natural Gas