Abraxas Petroleum Corporation announces that it has closed three separate divestitures for total net proceeds of approximately $5.4 million to certain undisclosed buyers. All of the net proceeds were used to repay outstanding indebtedness under the term loan portion of the Company's credit facility.
These non-core assets were located in Moffat County, Colorado, Bienville Parish, Louisiana and Bottineau County, North Dakota, and produced approximately 48 net barrels of oil equivalent per day which equates to approximately 1% of Abraxas' daily net production for the quarter ended September 30, 2009.
"We are pleased to announce these divestitures as we embark on our post-merger rationalization of non-core assets. Throughout the year, we will continue to divest assets that are not in our core areas, in particular non-operated properties," commented Bob Watson, Abraxas' President and CEO.