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