Abraxas Announces Canadian Success
Abraxas Petroleum Corporation announces that the first of five development wells is onstream in the Pouce Coupe area of Canada at a rate of 2.7 MMcfe per day. Four other wells are in various stages of completion in Pouce Coupe and the Caroline area with one well drilling in each area. The Company expects similar results from these wells with reserves expected to average 3 to 5 Bcfe per well. None of the seven locations are currently booked as proved or probable reserves by the Company's outside engineering firms.
Abraxas has identified over forty additional locations in the Caroline and Pouce Coupe areas based on the recent drilling and the 3-D seismic surveys completed in each area this past winter. The Company has one rig under contract in each area and anticipates drilling one well per month in Pouce Coupe and one well every six weeks in Caroline for the foreseeable future.
Abraxas and its consolidated Canadian subsidiary, Grey Wolf Exploration Inc., combined have an average 85% working interest in the seven wells but have a 100% working interest in the majority of the subsequent drilling locations.