EX-99 2 abp8kannualmeetingslides.txt Exhibit 99.1 8-K Robert L.G. Watson will be presenting at the Abraxas Petroleum Corporation Annual Meeting on May 25, 2006 Slide 1: Abraxas Petroleum Corporation Annual Meeting - May 25, 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: Pencil drawing of a drilling rig in an oil field Slide 2: Back to the Basics... Abraxas Petroleum Corporation o AMEX: ABP o Market capitalization - $200 million o Enterprise value - $330 million o Options: CBOE and PCX o Fully diluted shares outstanding - 44.3 million o Average trading volume > 500,000 shares per day Natural gas (80%) o Operations in Texas and Wyoming o > 10 year inventory of projects on existing leasehold o Proved RLI: > 17 years Quality assets o High ownership interests (79% WI) o Operational control (95%) o High producing rates per well o Large acreage positions o Substantial upside Slide 3: Goals... Back to the Basics... Drill Bit Growth ----------------- targeting Conventional Reservoirs & Emerging Resource Plays Increase Shareholder Value -------------------------- Slide 4: Growth... ...through the drill bit 2005 Success Rate = 92% (12 major projects) 2006 Budget = $40 million Production 55% Bar chart of cash flow, revenue and production by quarter & current production Slide 5: Areas of Operations... Proved Reserves - 104.7 Bcfe (1) 3P Reserves - 303.6 Bcfe (1) Net Production ~ 22 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% proved reserves 3% 3P reserves 2% net production 71% net undev. acres 29 projects (3P) 60 projects (incr) West Texas 70% proved reserves 84% 3P reserves 67% net production 27% net undev. acres 175 projects (3P) 157 projects (incr) South Texas 29% proved reserves 13% 3P reserves 31% net production 2% net undev. acres 33 projects (3P) 4 projects (incr) (1) as of 12/31/05 (2) current (3) as of 12/31/05 (includes mineral interest) Slide 6: West Texas... Map of Texas highlighting certain counties in West Texas 165 wells (74% WI) 73.0 Bcfe (Proved) 254.3 Bcfe (3P) 14.9 MMcfepd 17,600 NUA 175 identified projects (3P) Average depth: >14,000' Project Areas: IRA Clearfork / Strawn Reef Delaware Atoka-Wolfcamp / Mississippian / Woodford / Devonian / Montoya / Ellenburger Cherry Canyon Cherry & Bell Canyon Oates SW Wolfcamp / Atoka / Woodford / Devonian Slide 7: Oates SW... Map of Texas highlighting Pecos County in West Texas Conventional Reservoirs Lease map of Oates SW Field area with well locations, current activity and available wellbores depicted Slide 8: Delaware Basin Activity... Map of Texas highlighting Culberson, Reeves, Pecos, Loving and Ward counties in West Texas: Emerging Resource Plays West Texas Shale Play (Barnett / Woodford) Players: EOG, ECA, BR, KWK, SWN, RRC, PPP, K2X, CWEI, XTO, Reliance and Petro-Hunt ABP: Nine Mile Draw Field 2,350 net acres HBP ABP: Oates SW Field 13,000 acres (fee mineral/leasehold/executive) First Woodford well - gained valuable reservoir knowledge CHK&APC: Large Atoka fracs CHK recently leased ~10,000 acres for $200 - $2,000 per acre ABP: ROC Complex 6,210 net acres HBP Slide 9: South Texas... Map of Texas highlighting certain counties in South Texas 46 wells (93% WI) 30.2 Bcfe (Proved) 39.4 Bcfe (3P) 6.8 MMcfepd 1,200 NUA 33 identified projects(3P) Average depth: > 11,000' Project Areas: Edwards Edwards / Wilcox Wilcox Wilcox / Reklaw / Mackhank Portilla Frio / Vicksburg Wilcox - 2 wells planned for 2006, 1 currently drilling Slide 10: Wyoming... Map of Wyoming highlighting certain counties in east central Wyoming 10 wells (100% WI) 1.5 Bcfe (Proved) 9.9 Bcfe (3P) 0.4 MMcfepd 45,800 NUA 29 identified projects (3P) Average depth: 9,000' Project Area: Brooks Draw Teapot / Niobrara / Turner / Mowry / Muddy 4 wells drilled in 2005 - 8 commingled zones - IP: 80-100 barrels of oil per day 1 addt'l zone to be commingled 4 addt'l zones to be completed Slide 11: Increase Shareholder Value... Line chart of ABP share price and NYMEX gas since January 2005 Continue to improve balance sheet Maintain financial flexibility and liquidity Prioritize large opportunity set of projects Slide 12: Debt to Enterprise Value... Current Debt / Total Enterprise Value = 40% Area chart of total enterprise value and market cap from Dec 95 to current with significant corporate events notated Slide 13: 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 / $8.84 (4) 12,775 surface acres, 49,135 net undeveloped acres, 300,000 shares of GWE, and 2 workover rigs & 22 vehicles (5) Balance sheet as of March 31, 2006 (6) Treasury method Slide 14: 2006 Guidance... Production Annual (Bcfe) 7.5 - 8.5 Exit Rate (MMcfe/d) 22 - 24 Price Differentials off NYMEX Gas (%/Mcf) 15% Oil ($/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* * or 1x cash flow, whichever is lower 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 18: Summary... Niche exploitation and production company High quality assets with substantial upside Goals: o Drill Bit Growth targeting Conventional Reservoirs & Emerging Resource Plays o Increase Shareholder Value Slide 19: www.abraxaspetroleum.com Picture: Hudgins Ranch, Delaware Basin, West Texas