Abraxas Petroleum Corporation (Nasdaq: AXAS) is pleased to provide the following divestiture, financial and operational update.
Divestiture Update
Abraxas today announced an agreement in principle, subject to the signing of a definitive agreement and satisfactory resolution of several final due diligence items, to sell the Company’s 25% working interest at the Nordheim Project in the Eagle Ford shale to a large institutional buyer for approximately $20mm. The potential sale will also be subject to customary closing conditions and purchase price adjustments and will reflect an effective date of September 1, 2012. The divestiture consists of 544 net acres in DeWitt County, Texas and approximately 64 boepd (56% gas; 26% NGLs; 26% oil)of net production. Abraxas will retain the rights to its Edwards production, reserves and upside across both its Nordheim and Wagner lease blocks. Closing is estimated to take place in early December. Petrie Partners acted as financial advisor to Abraxas in this sale.
TXN Price at posting:
40.5¢ Sentiment: None Disclosure: Held
