Abraxas cuts expenses 40%, won’t drill or complete wells in current market conditions

Abraxas Petroleum Corp., San Antonio, will not drill or complete any new wells “while these [oil market] conditions persist,” the company said Mar. 16. The company has reduced G&A expense by 40% through a combination of salary reductions, reduction in board size, and selective layoffs. Capital expenditures will be limited to “minor projects that will reflect a meaningful and permanent reduction in lease operating expenses,” the company said. Most of the company’s lands are currently held by production and at current commodity prices, it said, the economics of drilling and completions in the Delaware and Bakken are questionable.

Due to the market uncertainty, company guidance will be suspended, it said.