Abraxas Petroleum Corporation is pleased to announce the execution of a definitive agreement to sell the company’s Eagle Ford interests at WyCross in McMullen County, Texas for $73 million.
Abraxas recently executed a definitive agreement to sell the company’s Eagle Ford interests at WyCross in McMullen County, Texas to an undisclosed buyer for $73 million. The sale is subject to customary closing conditions and purchase price adjustments and reflects an effective date of December 1, 2013.
The assets to be sold consist of approximately 1,200 net acres, 3.7 million barrels of proved reserves (1) (2.8 million barrels of oil, 3.0 billion cubic feet of gas and 0.5 million barrels of NGLS) and produced 655 boepd (597 barrels of oil per day, 154 million cubic feet of gas per day and 32 barrels of NGLs per day) net to Abraxas during the month of September 2013.
Abraxas plans to use the proceeds from this sale to immediately pay down the company’s bank line, before being ultimately redeployed into additional operated lease blocks in the Eagle Ford and Bakken. Closing is scheduled for December 2013.