Abraxas Petroleum Corp. (NASDAQ:AXAS)
During the period, the company reported $13.7 million or $0.09 per share in net income compared to (-$$40.9) million or (-$0.39) per share in net loss reported in the three months ended March 31, 2016. The company’s revenue during the period stood at $18.8 million.
In addition to the financial results, Abraxas Petroleum Corp. (NASDAQ:AXAS) announced completion of drilling of Caprito 98-301HRn and Caprito 98-201H in Texas. The company drilled the Caprito 98-301HR to target the Wolfcamp A2 zone while the Caprito 98-201H well was drilled to target the Wolfcamp A1 zone. The company is optimistic that the well will be complete and operational in the shortest time possible. Abraxas will have an 88% working stake in the wells.
Abraxas Petroleum Corp. (NASDAQ:AXAS) also started drilling works at the Caprito 83-404H and Caprito 83-304H wells. The company drilled Caprito 83-304H as a strategic target for Wolfcamp A2 zone and Caprito 83-404H as a strategic target for Wolfcamp B zone. The company will own 81% working stake in Caprito 83-404H and Caprito 83-304H.
In addition, Abraxas Petroleum Corp. (NASDAQ:AXAS) has drilled the Stenehjem 6H-9H well which is located in McKenzie County, North Dakota. The company owns 75% working stake in Stenehjem 6H-9H.
In a statement, Abraxas Petroleum Corp. (NASDAQ:AXAS) President and CEO, Bob Watson, said the company almost doubled its revenue compared to what it registered during the first quarter of the previous financial year. He added that the company reported a 20% drop in costs per barrel. He expressed optimism that the company will maintain an upward trajectory.
Abraxas Petroleum Corp. (NASDAQ:AXAS) closed the quarter with debt of $18 million to finance its $115 million revolver. The company is currently engaging with the lender for a possible extension of the loan facility on similar terms. The company, he said, is counting on possible increases in liquidity to fund its additional drilling activities as well as remain in a better financial position to acquire more wells. The company is counting on its strong balance sheet to boost its position in the Delaware Basin where it is exploring for more wells. He added that the company is on schedule in regards to its operations lined up for the year.
Abraxas Petroleum Corp. (NASDAQ:AXAS) was up by 1.60% in Wednesday’s trading session, ending the day at $1.90 a share.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.