Abraxas Announces Closing of WyCross Divestiture; Provides 2014 Guidance and
SAN ANTONIO -- December 23, 2013
Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to announce the closing
of the previously announced WyCross divestiture, provide 2014 guidance and
provide a divestiture update.
Abraxas recently closed the previously announced 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, 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, the company will complete one well on its Cave
prospect in McMullen County and 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.
Drilled Completed Net CAPEX
Bakken 7.2 6.4 $53.8
Eagle Ford 5.0 6.0 $40.8
Taking this capital budget into consideration, Abraxas expects 2014 production
to average between 4,900 and 5,100 boepd.
Abraxas recently monetized several non-core assets in North Dakota, Wyoming
and Texas at the December Oil and Gas Clearinghouse Auction for gross proceeds
of approximately $3.6 million. The assets sold produced approximately 54 boepd
(33 barrels of oil per day, 125 mcf of gas per day).
Bob Watson, President and CEO of Abraxas, commented, “Abraxas enters 2014 with
a pristine balance sheet and far more profitable and focused asset base. We
continue to identify additional opportunities in the Bakken and Eagle Ford and
will announce the results of these efforts when it is prudent. We look forward
to what promises to be an active 2014 Bakken and Eagle Ford drilling program.”
Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas
exploration and production company with operations across the Rocky Mountain,
Permian Basin and onshore Gulf Coast regions of the United States and in the
province of Alberta, Canada.
Safe Harbor for forward-looking statements: Statements in this release looking
forward in time involve known and unknown risks and uncertainties, which may
cause Abraxas’ actual results in future periods to be materially different
from any future performance suggested in this release. Such factors may
include, but may not be necessarily limited to, changes in the prices received
by Abraxas for crude oil and natural gas. In addition, Abraxas’ future crude
oil and natural gas production is highly dependent upon Abraxas’ level of
success in acquiring or finding additional reserves. Further, Abraxas operates
in an industry sector where the value of securities is highly volatile and may
be influenced by economic and other factors beyond Abraxas’ control. In the
context of forward-looking information provided for in this release, reference
is made to the discussion of risk factors detailed in Abraxas’ filings with
the Securities and Exchange Commission during the past 12 months.
Abraxas Petroleum Corporation
Geoffrey King, 210-490-4788
Vice President – Chief Financial Officer
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