Abraxas sells WyCross for $73 million

Abraxas Petroleum Corp.

Abraxas Petroleum Corp. (NASDAQ:AXAS) has an agreement to sell the company’s Eagle Ford interests at WyCross in McMullen County, Texas, for $73 million to an undisclosed buyer.

The sale has an effective date of December 1, 2013. Abraxas plans to use the proceeds from this sale to immediately pay down the company’s bank line, before being ultimately redeployed into additional operated lease blocks in the Eagle Ford and Bakken shale plays. Closing is scheduled for December 2013.

With the removal of the WyCross production volumes and two additional WyCross well completions in 2013, Abraxas is revising its 2013 production and exit rate guidance. Abraxas now expects 2013 production to average 4,300-4,350 boepd with an exit rate of approximately 4,500 boepd.

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