Message #24 From:
NewsBot Date: September 29, 2006 05:38:00 AM
ABP News Abraxas Announces Sale of Non-Core Assets in South Texas for $12 Million
SAN ANTONIO--(BUSINESS WIRE)--Abraxas Petroleum Corporation (AMEX:ABP) today announced that the
Company has closed on the sale of certain non-core assets located in
South Texas for a total consideration of $12 million, subject to closing
adjustments. The effective date of the sale was August 1, 2006.
The non-core assets were located in the Three Rivers (Edwards) Field of
Live Oak County, Texas and represented less than 2% of the Company’s
net proved reserves as of December 31, 2005 and approximately 3% of the
Company’s current daily net production. The
net proceeds will be used to repay outstanding indebtedness under the
Company’s revolving credit facility, to
continue the development of our core assets in Texas, and for general
corporate purposes.
“This asset sale will provide us the financial
liquidity and flexibility to continue our 2006 capital development plan;
however, due to the recent downturn in natural gas prices, we may delay
certain drilling activities until rig rates come into balance with
commodity prices. Since the valuation paid exceeds our historical
finding and development costs, we feel confident in our ability to
replace these reserves and associated production prior to year-end,”
commented Bob Watson, Abraxas’ President and
CEO.
Abraxas Petroleum Corporation is a San Antonio-based crude oil and
natural gas exploitation and production company with operations in Texas
and Wyoming.
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'
filing with the Securities and Exchange Commission during the past 12
months.
