Abraxas Petroleum Corp.
) - upstream energy firm - declared that it will invest roughly
$190.0 million capital during 2014, higher than the company's
previous expectation of $160.0 million.
Abraxas Petroleum revealed that it will allocate a considerable
amount of the projected capital toward drilling operations in the
Eagle Ford shale. The Eagle Ford program includes drilling of two
remaining wells in the Cave region in McMullen County, an extra
well in the Dilworth East area of McMullen County and three more
wells in the Jourdanton region of Atascosa County. Abraxas
Petroleum will also invest significant capital in acquiring more
acres in the Eagle Ford shale.
Apart from increasing the budget, the company also updated the 2014
production guidance. Total output is now expected between
5,800.0−6,000.0 barrels of oil equivalent per day (Boe/d), higher
than 5,500.0−5,700.0 Boe/d projected previously.
In a separate press release, Abraxas Petroleum declared that in
order to increase its liquidity for supporting drilling operations
in the Eagle Ford, it has started offering 10.0 million shares to
public. The offering's net proceeds will also be utilized for
normal corporate activities.
San Antonio, TX-based Abraxas Petroleum is primarily involved in
the exploration and production activities of oil and gas resources
in the U.S and Canada. The company currently carries a Zacks Rank
#3 (Hold), which implies that it is expected to perform in line
with the broader U.S. equity market over the next one to three
Meanwhile, one can also look at better-ranked players in the same
Athlon Energy Inc.
Ultra Petroleum Corp.
). All the stocks sport a Zacks Rank #1 (Strong Buy).
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