Abraxas recently signed a definitive agreement to divest the Company’s Brooks Draw assets in the Powder River Basin assets for approximately $11.3 million subject to standard closing conditions and purchase price adjustments. The assets sold consist of approximately 14,229 net acres and produced approximately 28 barrels of oil per day on average for the quarter ended September 30, 2016. The effective date of this transaction is October 1, 2016. Closing is scheduled for December 15, 2016. Upon closing, proceeds will be used to further reduce borrowings on the Company’s credit facility. Abraxas continues to market the Company’s remaining assets in the Powder River Basin.
In the Permian Basin, Abraxas now expects to close the previously announced sale of Hudgins Ranch(Pecos County, Texas) in December, 2016.