Abraxas provides operational results

Abraxas Petroleum Corporation provided operational results on the Gisler #1, an exploratory well targeting the Wilcox formation, located in Karnes County of South Texas.

The Gisler #1 was drilled vertically to a total depth of approximately 13,000′, completed without stimulation and placed on-line approximately two weeks ago. This well is currently producing at a gross rate of approximately 2.9 MMcf of gas and 55 Bbl of condensate per day, or 3.2 MMcfepd. This well may be fracture stimulated in the future. Abraxas Petroleum owns a 63% working interest in this well.

The production rates from the Gisler #1 are above our expectations. Even though a typical Wilcox well has a relatively steep initial decline rate, these wells are very economic and pay out quickly. We intentionally limit our exploratory budget to 20% of our overall capital expenditure budget. Our upcoming capital projects will focus on projects that are more development and exploitation in nature, commented Bob Watson, President and CEO of Abraxas.