Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to announce the
commencement of an underwritten public offering of 25,000,000 shares of
its common stock, subject to market and other conditions. The
underwriters will have an option to purchase up to an additional
3,750,000 shares from Abraxas. Abraxas intends to use the net proceeds
from this offering to repay indebtedness outstanding under our credit
facility, expand our planned drilling capital expenditures to the full
$40.0 million budgeted for 2016 including an acceleration of the
Company’s West Texas and Austin Chalk drilling programs and for general
corporate purposes including acquisitions.
Johnson Rice & Company L.L.C., Canaccord Genuity Inc. and Stephens
Inc. are acting as joint book-running managers for the offering. Copies
of the preliminary prospectus supplement for the offering may be
obtained on the website of the Securities and Exchange Commission, www.sec.gov,
or by contacting Johnson Rice & Company L.L.C., ATTN: Syndicate
Department, 639 Loyola Avenue, Suite 2775, New Orleans, LA 70113, or by
telephone at (800) 443-5924; Canaccord Genuity Inc., ATTN: Syndicate
Department, 99 High Street, 12th Floor, Boston, MA 02110, or by
telephone at (617) 371-3900; or Stephens Inc.’s Prospectus Department at
Stephens Inc., 111 Center Street, Little Rock, AR 72201, ATTN:
Prospectus Department (prospectus@stephens.com)
or by telephone at (501) 377-2131.
The common stock will be issued and sold pursuant to an effective shelf
registration statement on Form S-3 previously filed with the Securities
and Exchange Commission. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy these securities,
nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of such
state or jurisdiction. This offering may only be made by means of a
prospectus supplement and related base prospectus.
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 onshore Gulf Coast 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/20160519006645/en/
Copyright Business Wire 2016
Source: Business Wire
(May 19, 2016 - 4:13 PM EDT)
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