In Wyoming, all four wells that were recently drilled to a total depth of approximately 9,200 feet have been placed on pump and are undergoing production testing, with initial recovery of frac fluid. The four wells were completed in a total of seven formations. However, in order to comply with the Wyoming commingling statutes, each formation must be tested separately. The Company plans to complete five additional formations after testing the initial seven formations, for a total of twelve formations from four wells. Once all of the formations are completed and tested individually, they will be commingled and an ultimate sustained rate of production can be obtained.
Abraxas owns a 100% working interest in all six of the aforementioned wells.
"We are very pleased with the progress of the completions in Texas and Wyoming. Production from these wells will contribute to a continually growing production profile as we exit 2005 and enter 2006. In early 2006, we will commence a Devonian re-entry in the Oates SW Field of West Texas with our own workover rig, as the kick off to our $40 million capital expenditure budget for 2006. Recent industry activity in certain West Texas resource gas plays has brought a lot of attention to the area creating a very competitive environment. This competitive environment has required us to keep specific well information very close to our vest, which will enable us to trade the information with our competitors in exchange for their information," commented Bob Watson, President and CEO.
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