Abraxas Petrolem (NASDAQ: AXAS) Increases Production Guidance
In its most recent operational update, Abraxas Petroleum has increased production guidance. The company estimates output in 2013 to reach between 4,600 and 4,800 Boe per day. Volume increases are expected in the 4th quarter of this fiscal year, so the impact on average 2013 production levels is limited.
Abraxas has also closed the sale of Bakken assets for $38.3 million and is working with a $85 million capital expenditure budget.
The Great OPEC Bailout
Despite Saudi Arabia boosting its own production, oil supply from OPEC fell 165 thousand barrels per day in July. OPEC is losing global market share and will only produce and estimated 32 percent of global demand next year.
At time same time, non-OPEC supply is growing in North America, with an additional 1.4 million barrels per day expected in the second half of fiscal 2013. And while Big Oil has seen a slow climb, it is the smaller and independent oil companies that continue to reap the most benefit. Read more about how small oil companies are crushing names like ExxonMobil right here.