Abraxas closes WyCross divestiture, provides updates

Abraxas Petroleum Corp.

Abraxas Petroleum Corp. (NASDAQ:AXAS) has closed its divestiture of the company’s WyCross assets for net proceeds of $71.4 million, after accounting for all fees and purchase price adjustments. Proceeds were used to repay borrowings on the company’s bank line and will be ultimately redeployed into additional Bakken and Eagle Ford opportunities.

Abraxas’ board of directors recently approved a 2014 capital budget of $105 million. In the Bakken shale play, the company will maintain its one-rig continuous drilling program, resulting in the drilling of 7.2 and completion of 6.4 net wells. In the Eagle Ford shale, the company will complete one well on its Cave prospect in McMullen County, and will drill and complete five net wells on its Jourdanton prospect in Atascosa County. Approximately $10 million is budgeted to be spent acquiring additional leasehold in Abraxas’ core areas, the Bakken and Eagle Ford shale plays.

Abraxas has also monetized several non-core assets in North Dakota, Wyoming, and Texas at the December Oil and Gas Clearinghouse Auction for gross proceeds of $3.6 million. The assets sold produced 54 boepd (33 barrels of oil per day, 125 mcf of gas per day).




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