8-K 1 takestock.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 F O R M 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report October 2, 2003 Abraxas Petroleum Corporation (Exact name of registrant as specified in its charter) Nevada (State of other jurisdiction of incorporation) 0-19118 74-2584033 (Commission File Number) (I.R.S. Employer Identification Number) 500 N. Loop 1604 East, Suite 100 San Antonio, Texas 78232 (Address of principal executive offices) Registrant's telephone number, including area code: 210-490-4788 Item 9. REGULATION FD DISCLOSURE On October 2, 2003, the Company's President, Robert L.G. Watson, will speak at Take Stock Texas in San Antonio, Texas. Attached as Exhibit 99.1 are materials that Mr. Watson will present at the Symposium. Exhibit 99.1 is incorporated by reference under this Item 9. The information in this Report (including Exhibit 99.1) is furnished pursuant to Item 9 and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Report will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD. The following exhibits are filed as part of this report: NUMBER DOCUMENT 99.1 Slide presentation SIGNATURES Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ABRAXAS PETROLEUM CORPORATION By: /s/Chris Williford ------------------------------ Chris Williford Executive Vice President, Chief Financial Officer and Treasurer Dated: October 2, 2003 Exhibit 99.1 Slide 1: Abraxas Petroleum Corporation 2003 Take Stock Texas October 2, 2003 The information presented herein may contain predictions, estimates and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, the need to develop and replace reserves, environmental risks, competition, government regulation and the ability of the Company to meet its stated business goals. Picture: Hudgins, P.T. 34 #1H, Pecos County, Texas Slide 2: Positioning Statement Abraxas Petroleum Corporation o Oil and Gas exploration and production company o Based in San Antonio o Operations in Western Canada, Texas and Wyoming o AMEX:ABP Natural gas oOver 80% Quality assets oHigh ownership interests oOperations oHigh producing rates per well oLarge acreage positions oSubstantial upside Slide 3: Results 2002Sold 35% proved reserves oRetained all undeveloped acreage Reduced debt 45% Reduced cash interest 90% Issued equity at an implied 600% over market Positioned Company to develop upside Drilling success - Canada, West Texas Picture: Caroline, Alberta, Canada Slide 4: Goals 2003 Continue to: Improve balance sheet Develop upside Maximize shareholder value Picture: Henson Gas Unit #2H, South Texas Slide 5: Improve Balance Sheet Senior Secured 9% - $45 mm ($4 mm PIK) Second Secured 12.5% PIK - $118 mm o Callable at 91.5% until January 2004 o Trading at discount to call price PDP monetization PUD financing Other options Slide 6: Continue Proving Upside Map of Canada showing following areas: Ladyfern, British Columbia Peace River Arch, Alberta Caroline, Alberta Slide 7: Ladyfern, British Columbia, Canada Well Location Map Shown Offsets largest gas discovery in North America in many years 38,800 acres, 38% WI 2002 activity - drilled 6 wells (50% success) (marked on map) 2003 activity o 4 new wells drilled (75% success) (marked on map) o 1 horizontal re-entry of a 2002 well o Added compression to reduce line pressures and increase production Slide 8: Peace River Arch, Alberta, Canada 2 Well Location Map Shown 2002 activity - drilled 9 wells (89% success) (marked on map) Sold green acreage to PrimeWest Retained yellow acreage o 28,500 acres 68% WI o 1,400 acres subject to farmout (100% carry for 40% WI) 2003 planned activity (marked on map) o 1 farmout well o 6 100% Grey Wolf wells o 5 drilled with 100% success Slide 9: Caroline, Alberta, Canada Well Location Map Shown 2002 activity o Drilled 6 wells (100% success) (marked on map) o Expanded 100% owned infrastructure o Sold green acreage to PrimeWest Retained yellow acreage (21,000 acres, 89% WI) All acreage subject to AMI/ farmout (100% carry for 40% WI) 2003 planned activity o 6 farmout wells (marked on map) o 4 drilled with 75% success Slide 10: Continue Proving Upside Map of the United States showing following areas: Brooks Draw, Wyoming Delaware Basin, Texas Slide 11: Brooks Draw, Wyoming Well Location Map Shown 5 producing horizontal wells (marked on map) 62,000 acres, long-term leases 100% working interest 2 identified locations to test 3D (marked on map) One to be drilled late 2003 or early 2004 Slide 12: Delaware Basin, West Texas Well Location Map Shown 2002 activity o 4 horizontal wells (100% success) (marked on map) 22,800 acres, 83% WI 2003 planned activity o 3 Montoya/Devonian horizontal wells (marked on map) o 17,000' Ellenburger well (marked on map) 25 identified locations (marked on map) Accelerate PUD development Slide 13: Maximize Shareholder ValueImprove balance sheet with target debt/cap of 40% to 60% Maintain financial flexibility and liquidity Prioritize large opportunity set to high-grade those with highest return and lowest risk profile Capitalize on strategic acquisitions and divestitures Slide 14: Maximize Shareholder Value 2nds @ June 30, 2003 MM Market (60) ------------- -- ----------- Proved Reserves PV10 (1) $134 Incremental Reserves (88 Bcfe)(2) 84 Acreage (3) 15 Working Capital(4) <4> Debt (5) <160> <114> ----- Net Asset Value $69 $115 Shares Outstanding 35.6 NAV/Share $1.94 $3.23 (1)114 Bcfe valued at constant wellhead prices of $3.78 and $25.58. (2) Development projects on existing Company acreage requiring $72 mm capital. (3)Valued by Seaton-Jordan comparable lease sales. (4)Includes $2 mm accrued PIK interest. (5)Actual debt Slide 15: 2003 Guidance Production Gas Equivalents, Bcfe 7-8 Exit Rate, MMcfepd 20-25 Price Differentials from NYMEX Gas, $/Mcf .51 Oil, $/Bbl .64 Lifting Cost $/Mcfe, includes production taxes 1.21 G&A $/Mcfe .69 CAPEX MM$ 15.0 Slide 16: Summary Highlights Niche exploitation and production company High quality assets with substantial upside 2003 primary corporate goal of continuing to improve the balance sheet while increasing shareholder value Picture: Caroline, Alberta, Canada Slide 17: Final Slide www.abraxaspetroleum.com Picture of gas plant