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Abraxas Petroleum Corporation (OTCMKTS:AXAS) Stock Trades Sideways: Company Issues Reserve and Operational Update

Pete Matthews , , , ,

Shares of Abraxas Petroleum Corporation (OTCMKTS:AXAS) have been trading within a narrow range over the past few sessions.

Market Stats

On Monday, AXAS stock ended flat at $1.12 with more than 100K shares, compared to its average volume of 51K shares. The stock moved within a range of $1.1000 – 1.1600 after opening trading at $1.14.

Abraxas Provides Reserve and Operational Update

Abraxas Petroleum Corporation (OTCMKTS:AXAS) on February 28, 2022 gave operational and reserve updates. It must be noted that annual reserve comparisons are only for Delaware Basin assets.

A key highlight is that the Total Proved PV-10 reserves surged by 467% to $229 million. The Reserve Report encapsulates its Delaware Basin West Texas assets only, after sale of its Bakken assets and the report does not include extra geologic horizons being pursued by offset operators like Woodford/Meramec. The firm has about 11k net acres in heart of Southern Delaware Basin having successfully drilled 23 Wolfcamp/3rd Bone Springs horizontals across 5 distinct geologic benches.

The company’s proven oil and natural gas reserves comprised of 24.1MMBoe and reserves comprise of about 16.8 million barrels of oil, 2.5 million barrels of NGLs and 29.2 billion cubic feet of natural gas.

Bob Watson, President and CEO of Abraxas said that after adjustment of Bakken sale, the firm’s year-over-year net proved reserves augmented by 8.5 MMBoe. This was primarily due to adoption of two-mile lateral strategy across our Wolfcamp acreage. Watson added that the firm has developed a conservative approach for assigning future drilling locations harnessing 1,320’ acre. He also said added that the firm has more than 200 net locations on 1,320’ spacing, that have been delineated from development drilling.

Traders Corner

AXAS stock is trading above the 20-Day and 50-Day Moving averages of $1.09 and $1 respectively. The stock is trading in the neutral zone with RSI stands at 54.

Pete Matthews

Pete attended the University of Colorado and still calls the centennial state home. He chases trout in the summer and snowboards in the winter. He is fascinated with the markets and has a strong interest in nanocap stocks and crypto currency.