Abraxas Adds to Canadian Production
Abraxas Petroleum Corporation has participated in the drilling of 17 wells (12.1 net) in the Caroline, Peace River Arch and Ladyfern areas in Canada and anticipates adding 11-15 MMcfepd of net production.
In the Caroline and PRA areas, the Company drilled 11 wells (10.1 net) with a 91% success rate. Completion and tie-in operations are underway with the wells tested or currently on production at a combined net rate of 9-10 MMcfepd. The Company expects that one third of the wells will be online by the end of April with the balance expected to be online after break up. Overall net production from these two core areas is expected to be 23 MMcfepd by the end of April 2002. The Company anticipates drilling 11 additional wells during the balance of the year in Caroline and PRA and has identified 27 additional locations on its existing acreage. Of the 19 wells expected to be drilled in 2002, only two had proved reserves booked at the end of 2001. In addition, the Company continues to expand its gas plant and gathering infrastructure in both Caroline and PRA with gross plant throughput expected to be in excess of 45 MMcfpd by the summer (including third party volumes).
In the Ladyfern area, the Company drilled 6 wells (2 net) with a 50% success rate. The Company expects 2 wells (0.33 net) to be on production in the next month. The Company plans to integrate the results of the winter drilling program into its geologic and geophysical interpretation and expects to have a similarly active drilling program next winter. The Company is also exploring opportunities to expand the play on existing acreage on trend with the Ladyfern field.
CEO Bob Watson commented, "We are pleased with the success of our winter drilling activities in Canada. We continue to prove up our large inventory of projects in the Caroline and PRA areas and are very encouraged by the results of our Ladyfern drilling which set up a number of additional locations for next winter and beyond."