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
February 24, 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
See attached Press Release
The following exhibits are filed as part of this report:
NUMBER DOCUMENT
99.1 Press release dated February 24, 2003
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: February 24, 2003
Exhibit 99.1
NEWS RELEASE
ABRAXAS' BOARD APPROVES 2003 CAPITAL-SPENDING BUDGET,
HEDGING AGREEMENTS, AND DIRECTOR RESIGNATION
SAN ANTONIO, TX (February 24, 2003) - Abraxas Petroleum Corporation
("Abraxas") (AMEX:ABP) announced its Board of Director s approved the following
at a regularly scheduled meeting last week:
o The Company's execution of two different derivative instruments
associated with natural gas production. In the first agreement, the
Company entered into a zero cost collar related to 5,000 MMcf of gas
per day with a floor price of $4.50 and a ceiling of $6.25 per MCF
through July, 2003. The second agreement, for a similar volume of
natural gas, provides only a floor price of $4.50 per MCF, with no cap
on the ceiling price, through February 2004.
o A capital-spending budget for 2003 of $15 million. Of this amount, $6.4
million is allocated to U.S. projects and $8.6 million is related to
projects associated with the Company's Canadian subsidiary, Grey Wolf
Exploration. The Company plans to participate in the drilling of 20
gross (6.8 net) wells, of which 6 gross (5.4 net) will be operated.
o The acceptance of the resignation of Fred Pevow, Director, effective
immediately. A nominating committee has been formed to appoint a
replacement.
CEO Bob Watson commented, "With the successful completion of our Canadian
asset sales and recent Tender Offer, we are now in a position to continue to add
value to our undeveloped assets. Our announced capital spending budget should
allow for growth in production and reserves for 2003 and the recently engaged
hedges allow us to meet all our obligations under the debt facilities recently
put in place. The approved capital budget of $15 million should allow us to exit
2003 with daily production between 20 and 25 million cubic feet of gas
equivalents compared to January 2003 production of approximately 19.3 million
cubic feet of gas equivalents per day. At current strip gas prices, the Company
should generate significant excess cash flow which will be used to pay down
debt."
Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural
gas exploitation and production company that also processes natural gas. The
Company operates in Texas, Wyoming and western Canada.
Safe Harbor for forward-looking statement: Statements in this release
looking forward in time involve known and unknown risks and uncertainties, which
may cause the Company's actual results in future periods to be materially
different from any future performance suggested in this release. Such factors
may include, but may not be necessarily limited to, changes in the prices
received by the Company for crude oil and natural gas. In addition, the
Company's future crude oil and natural gas production is highly dependent upon
the Company's level of success in acquiring or finding additional reserves.
Further, the Company operates in an industry sector where the value of
securities is highly volatile and may be influenced by economic and other
factors beyond the Company's control. In the context of forward-looking
information provided for in this release, reference is made to the discussion of
risk factors detailed in the Company's filing with the Securities and Exchange
Commission during the past 12 months.
FOR MORE INFORMATION CONTACT:
Janice Herndon/Manager Corp. Communications
Telephone 210.490.4788
jherndon@abraxaspetroleum.com
www.abraxaspetroleum.com