Abraxas signs definitive sale agreement at Nordheim and provides financial updates
Nov 21, 2012 (Menafn - M2 EQUITYBITES via COMTEX) --Abraxas Petroleum Corporation AXAS, oil and gas company, on Tuesday reported the divestiture of its 25% working interest at the Nordheim Project and a related financial update.
Under an agreement, the company's working interest in the Eagle Ford shale has been sold to a large institutional buyer for proceeds of USD19.1m. The divestiture is subject to customary closing conditions and purchase price adjustments, reflecting an effective date of 1 September 2012
The asset comprises 544 net acres in DeWitt County, Texas and about 64 boepd (56% gas; 26% NGLs; 26% oil) of net production, the company said and added that closing is scheduled for 17 December 2012 with Petrie Partners acting as financial advisor for the sale.
Abraxas has also disclosed that its borrowing base was raised to USD150m recently, which already reflected the removal of reserves and production related to the Nordheim sale. As of the quarter ending 30 September 2012, it had drawn USD134m on the facility and USD2.6m in cash.
Further, the company recently sold its Alberta Basin properties in Montana for USD2.85m. About USD22m of combined proceeds from these sales will immediately reduce borrowings on the revolver that stands at USD134m at quarter end.
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