Abraxas Petroleum Corp. (NASDAQ: AXAS) said April 30 it acquired interest in 210 net acres in the Bakken/Three Forks play in North Dakota.

The acquisition includes a majority interest in one additional unit offsetting the San Antonio-based company’s North Fork acreage in McKenzie County, a company release said. The terms of the transaction weren't disclosed.

Abraxas said it now plans to go before the North Dakota Industrial Commission (NDIC) to install the company as operator on the unit where it now holds a controlling interest. With success and the approval of downspacing by the NDIC, the unit has the potential to add an additional 15 operated Bakken and Three Forks wells to its North Fork inventory.

At the North Fork prospect, the Jore 5H, Jore 6H, Jore 7H and Jore 8H are scheduled to be fracture stimulated in late May. The company said it estimates that the per stage fracture stimulation cost savings will be upwards of 50% versus the original projections on the wells.

Abraxas owns a working interest of about 76% in the Jore 5H-8H.

On the Ravin Northwest pad, surface and intermediate casing have been set on the Ravin 8H, Sten–Rav 1H and Stenehjem 5H. Currently, the company is preparing to drill the lateral section of the Stenehjem 5H.

After receiving elections, the company's working interest in the Ravin Northwest pad increased to 74% from 57%.

Eagle Ford Update

At the Jourdanton prospect in Atascosa County, Texas, the Grass Farm 2H has been fracture stimulated and drill out is expected to begin shortly.

At the Dilworth East prospect in McMullen County, Texas, the R. Henry 1H is scheduled to be fracture stimulated next week. The company said it estimates that the per stage fracture stimulation cost savings will be upwards of 38% versus original projections on both wells.

Abraxas owns a 100% working interest in the Grass Farm 2H and R. Henry 1H.

Production for the first quarter of 2015 averaged about 6,590 barrels of oil equivalent per day. It consisted of 4,475 barrels per day (bbl/d) of oil, 8,871 thousand cubic feet per day of natural gas, 637 bbl/d of NGL.

Production volumes for the quarter were negatively impacted by gas processing constraints in the Bakken and Permian as well as increased work-over activity in the Eagle Ford and Bakken, the release said.

Borrowing Base

Abraxas' bank group also reaffirmed the borrowing base under the company's senior secured revolving credit facility at $165 million following the regular semi-annual redetermination. No other changes were made to the terms of the facility.

Abraxas exited March 31 with $110 million borrowed and roughly $3.9 million in cash providing liquidity of $59 million.

At year-end 2014, the company had a working capital deficit of $52.8 million. As of March 31, the company’s working capital deficit was an estimated $13.7 million. The increased borrowings on the company’s credit facility are directly offset by the reduction in the company’s working capital deficit.