Abraxas Petroleum Corporation (“Abraxas” or the “Company”) (NASDAQ:AXAS)
today announced the signing of a definitive agreement to acquire 2,008
net acres and 33 Boepd in Ward County, Texas prospective for the
Wolfcamp/Bone Spring. Highlights include:
This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20170523006446/en/
Map of Abraxas’ updated acreage position. (Graphic: Business Wire)
-
Definitive agreement signed to acquire 2,008 net acres and 33
Boepd (91% natural gas) in Ward County prospective for the Bone Spring
and Wolfcamp for $22.2 million
-
Up to four identified zones across the Third Bone Spring and
Wolfcamp
-
Acquisition consists of interests in three incremental operated
units, four non-operated units as well as interests in three existing
Abraxas operated units
-
Adds 32 gross, 25 net operated potential locations and 48 gross,
8 net non-operated potential locations not including increased working
interests in existing operated units
Ward County Acquisition
In Ward County, Texas Abraxas recently signed a definitive agreement to
acquire 33 Boepd and 2,008 net mineral acres prospective for the Bone
Spring and Wolfcamp formations for $22.2 million. The acquisition
consists of approximately 1,888 net acres held by production and 120 net
leasehold acres covered by a three-year primary term lease. The acreage
purchased consists of two operated units, four non-operated units and
additional interests in three existing Abraxas operated units on trend
and adjoining the Company’s existing acreage position. The acreage is
prospective for up to four zones across the Wolfcamp and Third Bone
Spring, providing an additional 80 gross potential locations to Abraxas’
inventory (not including increased working interests in existing
operated units). Abraxas plans to fund the acquisition entirely on the
Company’s line of credit with an anticipated closing date in June 2017.
Abraxas capital budget of $110 million remains unchanged. Included is a
map of Abraxas’ updated acreage position.
Bob Watson, President and CEO of Abraxas, commented, “During our January
2017 equity raise, our stated corporate goals were to add Wolfcamp/Bone
Spring acres in the Delaware Basin at a reasonable cost, continue to
derisk our Delaware Basin acreage position, build our production base to
a critical mass by year end and maintain our best in class balance
sheet. We are pleased to announce that we remain on track to achieve all
of these goals.
“This Delaware Basin acquisition fits seamlessly within our existing
acreage footprint and increases our exposure to the Delaware Basin Bone
Spring/Wolfcamp play by approximately 35% to 7,757 (1) net
acres. Importantly this was done at a favorable price of just over
$10,000/acre. We continue to evaluate similar bolt on opportunities to
further expand our Delaware Basin footprint.“
(1) Includes 480 net acres on Abraxas’ Howe lease which is
currently subject to a title dispute. Abraxas does not have any reserves
or planned 2017 capital expenditures relating to the acreage that is
subject to this title dispute.
Abraxas Petroleum Corporation is a San Antonio based crude oil and
natural gas exploration and production company with operations across
the Rocky Mountain, Permian Basin and South Texas regions of the United
States.
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’
filings with the Securities and Exchange Commission during the past 12
months.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170523006446/en/
Copyright Business Wire 2017
Source: Business Wire
(May 23, 2017 - 4:15 PM EDT)
News by QuoteMedia
www.quotemedia.com