Abraxas to Drill in Austin Chalk
Abraxas is moving forward to drill in the Austin Chalk without joint venture partnership.
Related: Abraxas: No Activity in the Eagle Ford
Abraxas Petroleum Corporation announced last week it has begun the process to drill their first well that targets the Austin Chalk at Jourdanton in Atascosa County. The company spudded Bulls Eye 101H on June 16 and estimates that the well will be producing by September 2016. Executives estimate that the drilling and completion costs for this first well will be around $5.8 million, which Abraxas will shoulder alone after terminating talks for a potential joint venture on this project.
“Although we are disappointed we could not come to an agreement with this potential partner in a timely manner, drilling this well on our own will give our shareholders more upside exposure compared to the reduced working interest in the joint venture.”
Abraxas also announced it is increasing its 2016 capital expenditure budget from $25 million to between $30 million and $40 million. All of this new activity is on the heels of a change in company leadership as Lee T. Billingsley, Abraxas’ Vice President of Exploration, resigned his position at the beginning of the month.