The board of directors at Abraxas Petroleum Corp. (Nasdaq: AXAS) increased the company's capital budget to $160 million, the company said June 4.
The extra $35 million will be used to drill three incremental Eagle Ford wells--Ribeye 1H, Dutch 3H and Dutch 4H, the company said.
The capital budget will be supported through increased cash flows from operations, as well as through credit facility borrowings, Abraxas said.
The borrowing base is being redetermined, and the company expects lenders to increase it, Abraxas added.
Alongside the increased capital budget, the company revised its production guidance for the year. Its estimate for total production, in barrels of oil equivalent per day (boe/d), was raised, the company said. It now stands between 5,500 and 5,700 boe/d, up from the original 5,200 to 5,300 boe/d guidance, the company said. Of the total boe/d, 70% is estimated to be oil, 7% is estimated to be NGL and 23% is estimated to be natural gas, under the revised guidance, Abraxas added.
The total capex was increased under the new guidance, to $160 million from the original $125 million, Abraxas said.
Abraxas Petroleum Corp., based in San Antonio, produces and develops domestic oil and natural gas.
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