EX-99 2 slidepresentation011106.txt Exhibit 99.1 8-K Robert L.G. Watson will be presenting at the Pritchard Capital Energy Conference in San Francisco, January 11, 2006 Slide 1: Abraxas Petroleum Corporation Energize 2006: Reality & Opportunity Pritchard Capital Energy Conference January 11, 2006 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: Collage of oil field pictures & outline of the U.S. Slide 2: Back to the Basics... Abraxas Petroleum Corporation o AMEX: ABP o Fully diluted shares outstanding - 44.5 million o Average trading volume (2005) - 489,000 shares per day o Traded 123 million shares (2005) - 276% of FD shares o Share price appreciation (2005) - 128% o Operations in Texas and Wyoming Natural gas o Approximately 80% Quality assets o High ownership interests o Operations o High producing rates per well o Large acreage positions o Substantial upside Slide 3: Debt to Enterprise Value... Current Debt / Total Enterprise Value = 37% Area chart of total enterprise value and market cap from Dec 95 to current with significant corporate events notated Slide 4: Growth... ...through the drill bit 2005 Success Rate = 92% (13 major projects) Cash Flow 400% Revenue 80% Production 58% Bar chart of cash flow, revenue and production by quarter Slide 5: Operations... Proved Reserves - 93.7 Bcfe (1) Net Production - 22.4 MMcfepd (2) Net Undeveloped Acres ~ 65,000 (3) Map of the United States highlighting Wyoming and Texas Wyoming 0.8 Bcfe - 1% 0.3 MMcfepd - 1% 46,000 acres - 71% West Texas 65.1 Bcfe - 69% 14.9 MMcfepd - 67% 17,900 acres - 27% South Texas 27.8 Bcfe - 30% 7.2 MMcfepd - 32% 1,100 acres - 2% (1) as of 12/31/04 (2) 2005 exit rate (3) as of Dec-05 Slide 6: Goals 2006... Back to Basics... Operations ---------- Drill Bit Growth Emerging Gas & Oil Resource Plays Shareholders ------------ Continue to Maximize Value Slide 7: 2006 Projects... $40 million budget from $70 million of projects approved by Board South Texas ------------ Edwards Portilla Wilcox West Texas ---------- Cherry Canyon Delaware Oates SW IRA Wyoming ------- Brooks Draw Slide 8: South Texas... Map of Texas highlighting certain counties in South Texas 45 wells (93% WI)(1) 27.8 Bcfe - 30% 7.2 MMcfepd - 32% 1,100 NUA - 2% 2006 Project Areas & Target Zones: ---------------------------------- Edwards Edwards / Wilcox Wilcox Wilcox / Reklaw / Mackhank Portilla Frio / Vicksburg (1) as of 12/31/04 Slide 9: West Texas... Map of Texas highlighting certain counties in West Texas 166 wells (74% WI)(1) 65.1 Bcfe - 69% 14.9 MMcfepd - 67% 17,900 NUA - 27% 2006 Project Areas & Target Zones: ---------------------------------- IRA Clearfork / Strawn Reef Delaware Atoka / Mississippian / Montoya / Woodford / Devonian Cherry Canyon Cherry & Bell Canyon Oates SW Wolfcamp / Woodford / Atoka / Devonian (1) as of 12/31/04 Slide 10: Delaware Basin Activity... Map of Texas highlighting certain counties in West Texas Resource Gas Plays Loving / Reeves / Ward Counties Primary Target - ATOKA Culberson / Reeves / Pecos Counties Primary Target - WEST TEXAS SHALES Slide 11: Atoka... Map of Texas highlighting Reeves, Loving and Ward counties in West Texas CHK & APC: Large fracs ABP offset acreage: CHK recently leased ~10,000 acres for $200- 2,000 per acre ABP: ROC, Block 16 & Howe Fields - numerous producers (never fraced) ABP: Nine Mile Draw Field - shows behind pipe Slide 12: West Texas Shale... Map of Texas highlighting Culberson, Reeves and Pecos counties in West Texas, highlighting the following companies which are active in the area: EOG, ECA, Petro-Hunt, SWN, RRC, BR, KWK, PPP, K2X, CWEI (ECA), Reliance, XTO ABP: Nine Mile Draw Field - shows behind pipe ABP: Oates SW Field - first Woodford well - installing production facilities Slide 13: Wyoming... Map of Wyoming highlighting certain counties in east central Wyoming Resource Oil Play 10 wells (100% WI) (1) 0.8 Bcfe - 1% 0.3 MMcfepd - 1% 46,000 NUA - 71% 2006 Project Area & Target Zones: --------------------------------- Brooks Draw Niobrara / Turner Mowry / Muddy (1) as of 12/31/05 Slide 14: 2006 Guidance... Production Annual (Bcfe) 7.5 - 8.5 Exit Rate (MMcfe/d) 22 - 24 Price Differentials off NYMEX Gas (%/Mcf) 5% Oil ($/Bbl) 1.00 Production Taxes (% of Revenue) 10% Direct Lease Operating Expenses ($/Mcfe) 1.10 G&A ($/Mcfe) 0.55 Interest ($/Mcfe) 2.00 D/D/A ($/Mcfe) 1.30 Capital Expenditures ($MM) 40.0 Guidance does not include non-cash and extraordinary items Hedge position: 10,000 Mcf/d through July 2006 with $5.00-$8.00 floor Slide 15: Maximize Shareholder Value... Continue to improve balance sheet o current debt to total enterprise value = 37% Maintain financial flexibility and liquidity Prioritize large opportunity set of projects Slide 16: Summary... Niche exploitation and production company High quality assets with substantial upside Goals: o Drill Bit Growth targeting Emerging Gas & Oil Resource Plays in Texas and Wyoming o Maximize Shareholder Value Slide 17: www.abraxaspetroleum.com Picture: Delaware Basin, West Texas