-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IkgjJzi6sauybxi/SVmqh3+20OfoNMMD76P/1K0GMxsueGuYDI9nFeU3xZl4ck0t fXQaxRyWZCVXuYT1CShkeA== 0000867665-06-000030.txt : 20060509 0000867665-06-000030.hdr.sgml : 20060509 20060509094342 ACCESSION NUMBER: 0000867665-06-000030 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060509 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060509 DATE AS OF CHANGE: 20060509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ABRAXAS PETROLEUM CORP CENTRAL INDEX KEY: 0000867665 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 742584033 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16071 FILM NUMBER: 06818939 BUSINESS ADDRESS: STREET 1: 500 N LOOP 1604 E STE 100 CITY: SAN ANTONIO STATE: TX ZIP: 78232 BUSINESS PHONE: 2104904788 MAIL ADDRESS: STREET 1: 500 N LOOP 1604 EAST STE 100 CITY: SAN ANTONIO STATE: TX ZIP: 78232 8-K 1 slidepresentation8k050906.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 May 9, 2006 Date of Report (Date of earliest event reported) ABRAXAS PETROLEUM CORPORATION (Exact name of registrant as specified in its charter) Nevada 0-19118 74-2584033 (State or other jurisdiction of (Commission (IRS Employer incorporation) File Number) Identification No.) 500 N. Loop 1604 East, Suite 100 San Antonio, Texas 78232 (210) 490-4788 (Address of principal executive offices and Registrant's telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 7.01 Regulation FD Disclosure The information in this Report (including Exhibit 99.1) is furnished pursuant to Item 7.01 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 the 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 Company's CEO, Robert L.G. Watson., will be presenting to multiple noney/fund managers in Dallas, Chicago and Milwaukee, May 9-10, 2006. Attached as Exhibit 99.1 are materials that Mr. Watson will present. Item 9.01 Financial Statements and Exhibits (c) Exhibits 99.1 Slide presentation. SIGNATURES Pursuant to the requirements 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: May 9, 2006 EX-99 2 slidepresentation050906.txt Exhibit 99.1 8-K Robert L.G. Watson will be presenting to multiple money/fund managers in Dallas, Chicago and Milwaukee, May 9-10, 2006 Slide 1: Abraxas Petroleum Corporation 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 Market capitalization - $250 million o Enterprise value - $380 million o Options: CBOE and PCX o Fully diluted shares outstanding - 44.3 million o Average trading volume (2005) - 489,000 shares per day o Traded 123 million shares (2005) - 277% of FD shares o Share price appreciation (2005) - 128% Operations in Texas and Wyoming o > 10 year inventory of projects on existing leasehold o Approximately 80% natural gas Quality assets o High ownership interests (79% WI) o Operations (95%) o High producing rates per well o Large acreage positions o Substantial upside Slide 3: Debt to Enterprise Value... Current Debt / Total Enterprise Value = 34% 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% (12 major projects) Production 55% Bar chart of cash flow, revenue and production by quarter & current production Slide 5: Operations... Proved Reserves - 104.7 Bcfe (1) 3P Reserves - 303.6 Bcfe(1) Net Production - 22.4 MMcfepd (2) Net Undeveloped Acres ~ 64,600 (3) 237 Identified (3P) Projects 221 Incremental Projects Map of the United States highlighting Wyoming and Texas Wyoming 1.5 Bcfe (Proved) - 1% 9.9 Bcfe (3P) - 3% 0.3 MMcfepd - 1% 45,800 acres - 71% 29 projects (3P) 60 incr projects West Texas 73.0 Bcfe (Proved) - 70% 254.3 Bcfe (3P) - 84% 14.9 MMcfepd - 67% 17,600 acres - 27% 175 projects (3P) 157 incr projects South Texas 30.2 Bcfe (Proved) - 29% 39.4 Bcfe (3P) - 13% 7.2 MMcfepd - 32% 1,200 acres - 2% 33 projects (3P) 4 incr projects (1) as of 12/31/05 (2) 2005 exit rate (3) as of Dec-05 (includes mineral interest) Slide 6: Goals 2006... Back to Basics... Operations - ---------- Drill Bit Growth Emerging Gas & Oil Resource Plays & Conventional Reservoirs Shareholders - ------------ Continue to Maximize Value Slide 7: 2006 Projects... $40 million budget from $70 million of projects approved by Board Map of the United States highlighting Wyoming, South and West Texas Slide 8: West Texas... Map of Texas highlighting certain counties in West Texas 165 wells (74% WI) 73.0 Bcfe (Proved) - 70% 254.3 Bcfe (3P) - 84% 14.9 MMcfepd - 67% 17,600 NUA - 27% 175 identified projects (3P) (83 conventional / 92 resource) Average depth: >14,000' 2006 Project Areas & Target Zones: - --------------------------------- IRA Clearfork / Strawn Reef Delaware Atoka / Mississippian / Woodford / Devonian / Montoya / Ellenburger Cherry Canyon Cherry & Bell Canyon Oates SW Wolfcamp / Woodford / Atoka / Devonian Slide 9: 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 Conventional Ward / Pecos Counties Multiple Targets Slide 10: 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 6,210 net acres HBP Numerous producers (never fraced) 8 projects (3P) 3 completed to-date ABP: Nine Mile Draw Field 2,350 net acres HBP Shows behind pipe Slide 11: 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 2,350 net acres HBP Shows behind pipe ABP: Oates SW Field 13,000 acres (fee mineral/leasehold/executive) First Woodford well on production 84 resource projects (3P) Slide 12: Conventional... Map of Texas highlighting Ward and Pecos counties in West Texas PRIMARY TARGETS - Mississippian, Devonian, Montoya, Ellenburger & Bell/Cherry Canyon ABP: ROC, Block 16 & Howe Fields 6,210 net acres HBP 36 conventional projects (3P) ABP: Oates SW Field 13,000 acres (fee mineral/leasehold/executive) 2 Devonian wells: > 9 MMcfepd 6 conventional projects (3P) 3 currently active Slide 13: South Texas... Map of Texas highlighting certain counties in South Texas 46 wells (93% WI) 30.2 Bcfe (Proved) - 29% 39.4 Bcfe (3P) - 13% 7.2 MMcfepd - 32% 1,200 NUA - 2% 33 identified projects (3P) Average depth: > 11,000' 2006 Project Areas & Target Zones: - --------------------------------- Edwards Edwards / Wilcox Wilcox Wilcox / Reklaw / Mackhank Portilla Frio / Vicksburg Slide 14: Wyoming... Map of Wyoming highlighting certain counties in east central Wyoming Resource Oil Play 10 wells (100% WI) 1.5 Bcfe (Proved) - 1% 9.9 Bcfe (3P) - 3% 0.3 MMcfepd - 1% 45,800 NUA - 71% 29 identified projects (3P) Average depth: 9,000' 2006 Project Area & Target Zones: - -------------------------------- Brooks Draw Teapot / Niobrara / Turner / Mowry / Muddy 4 wells drilled in 2005 currently producing from 8 combined & commingled zones at 80-100 barrels of oil per day 1 addt'l zone to be commingled 4 addt'l zones to be completed Slide 15: Net Asset Value... MM Proved Reserves (1) $ 311.9 Probable Reserves (2) 63.4 Possible Reserves (3) 161.2 Acreage, Land & Other (4) 12.8 Working Capital (5) (6.1) Debt (5) (129.8) ----------------- Net Asset Value $ 413.4 Shares Outstanding 44.3 NAV/Share 9.33 Notes: (1) 104.7 Bcfe of proved reserves (12/31/05) at SEC PV10 with realized prices of $56.92 / $8.84 (2) 27.4 Bcfe of probable reserves (12/31/05) at SEC PV10 with realized prices of $56.92 / $8.84 (3) 171.5 Bcfe of possible reserves (12/31/05) at SEC PV10 with realized prices of $56.92 / $8.84 (4) 12,775 surface acres, 49,135 net undeveloped acres, 300,000 shares of GWE, and 2 workover rigs & 22 vehicles (5) Balance sheet as of March 31, 2006 (6) Treasury method Slide 16: 2006 Guidance... Production Annual (Bcfe) 7.5 - 8.5 Exit Rate (MMcfe/d) 22 - 24 Price Differentials off NYMEX Gas (%/Mcf) 15% Oil ($/Bbl) 2.00 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) 1.80 Capital Expenditures ($MM) 40.0 Guidance does not include non-cash and extraordinary items Hedge position: 10,000 Mcf/d through November 2006 with $5.00-$8.00 floor Slide 17: Maximize Shareholder Value... Continue to improve balance sheet o current debt to total enterprise value = 34% Maintain financial flexibility and liquidity Prioritize large opportunity set of projects Slide 18: Summary... Niche exploitation and production company High quality assets with substantial upside Goals: o Drill Bit Growth targeting Emerging Gas & Oil Resource Plays & Conventional Projects in Texas and Wyoming o Maximize Shareholder Value Slide 19: www.abraxaspetroleum.com Picture: Delaware Basin, West Texas P:\BARBARA\INVESTOR RELATIONS\Presentations\2006\8K_ CK Cooper 2006 May.doc -----END PRIVACY-ENHANCED MESSAGE-----