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