Abraxas Provides Divestiture Update

Abraxas Provides Divestiture Update

Today, Abraxas closed on the sale of the Company’s Brooks Draw assets in the Powder River Basin for $11.1 million in gross proceeds. Abraxas continues to market the Company’s remaining assets in the Powder River Basin.

Abraxas recently received a termination notice from the potential buyer of the Company’s Hudgins Ranch property in Pecos County, Texas. Abraxas did retain 50% of the survey fees associated with the terminated sale. Abraxas is currently remarketing the property and is in discussions with several potential buyers. As a reminder, Abraxas holds approximately 13,468 acres (12,178 acres owned; 1,291 acres leased) in Pecos County, Texas. This property is approximately five miles to the east of the most southeasterly portion of another operator’s recent discovery known as “Alpine High.” Abraxas currently has the surface ownership and a ½ of the Company’s current mineral ownership listed with a broker for $550/acre. Abraxas plans to retain the remaining ½ of the Company’s current mineral interests and executive rights over the leasehold. Abraxas also holds 3-D seismic, numerous logs and vertical production from the Barnett/Woodford on the leasehold. The Company also has salt water disposal wells and related infrastructure on the property. In addition to the potential sale of the surface ranch and ½ of Abraxas’ current mineral ownership, Abraxas will be looking for a third party to lease the property as well as take over the Company’s existing production and related infrastructure.

SOURCE:  http://www.abraxaspetroleum.com/news.aspx?releaseid=2233612

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