Abraxas Petroleum Corporation (NASDAQ:AXAS) (“Abraxas Petroleum” or the
“Company”) today announced that it has priced an upsized underwritten
public offering of 25,000,000 shares of its common stock at a public
offering price of $2.40 per share. Abraxas Petroleum has granted the
underwriters a 30-day option to purchase up to 3,750,000 additional
shares of common stock.
The offering is expected to settle and close on or about January 25,
2017, subject to customary closing conditions. We plan to use the net
proceeds from this offering (including any proceeds from the exercise of
the underwriters’ option to purchase additional shares) to accelerate
our drilling program with an expanded 2017 capital expenditure budget of
approximately $110 million. We may also use such proceeds for general
corporate purposes including acquisitions. We have historically drawn on
our bank credit facility to fund our capital expenditures and intend to
initially use most of the net proceeds from this offering to repay the
amounts outstanding under this facility.
Seaport Global Securities LLC, 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 Seaport Global Securities LLC, 360 Madison Avenue, 21st
Floor, New York, NY 10017, or by telephone at: (646) 264‐5629, or by
email at vkump@seaportglobal.com;
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 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/20170120005251/en/
Copyright Business Wire 2017
Source: Business Wire
(January 20, 2017 - 7:43 AM EST)
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