Gulf Oil and Gas accountACCOUNT

Abraxas Signs Definitive Agreement of the Nordheim Project

Source: www.gulfoilandgas.com 11/20/2012, Location: North America

Abraxas Petroleum Corporation is pleased to provide the following divestiture and financial update.

Nordheim Definitive Agreement
Abraxas signed an agreement to sell the Company's 25% working interest at the Nordheim Project in the Eagle Ford shale to a large institutional buyer for proceeds of $19.1mm. The sale is subject to customary closing conditions and purchase price adjustments and reflects an effective date of September 1, 2012. The asset consists of 544 net acres in DeWitt County, Texas and approximately 64 boepd (56% gas; 26% NGLs; 26% oil) of net production. Abraxas will retain the rights to its Edwards production, reserves and upside across both its Nordheim and Wagner lease blocks. Closing is scheduled for December 17, 2012. Petrie Partners acted as financial advisor for Abraxas on the sale.

Financial Update

Per the Abraxas' November 12, 2012 release, the Company's borrowing base was recently raised to $150mm from its previous level of $140mm. As of quarter end September 30, 2012, the Company had $134mm drawn on the facility and $2.6mm in cash. The $150mm borrowing base already reflects the removal of reserves and production associated with the Nordheim sale. In addition to the $19.1mm Nordheim sale, the company recently announced the sale of its Alberta Basin properties in Montana for $2.85mm. The approximately $22mm of combined proceeds from these sales will immediately go to reducing borrowings on the revolver, which stood at $134mm at quarter end. Thus, pro forma liquidity post the sales will reflect current borrowings, less net proceeds from the sales, compared to a $150mm borrowing base.

Bob Watson, President and CEO of Abraxas, commented, "We remain committed to delivering shareholder value by executing on our well articulated plan of growing production and reserves, delevering the balance sheet via this production growth and noncore asset sales and refocusing the portfolio. The asset sales will consist of positions in which we have low working interests and/or assets with little associated reserves, production or cash flow. The Nordheim and Alberta Basin Bakken sales with combined proceeds of approximately $22mm is evidence this transformation is underway."

Oil Shale News in United States >>

United States >>  5/9/2019 - Anadarko Petroleum Corporation has entered into a definitive merger agreement with Occidental Petroleum Corporation under which Occidental will acquir...
United States >>  5/7/2019 - TechnipFMC (FTI) has been awarded a significant integrated Engineering, Procurement, Construction and Installation (iEPCI) contract by BP for the Thun...

Related Categories: Coalbed Methane  General  Heavy Oil  Methane Clathrate  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 

Related Articles: Coalbed Methane  General  Heavy Oil  Methane Clathrate  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 


United States Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 | 66 | 67 | 68 | 69 | 70 | 71 | 72 |

Oil & Gas Projects in United States >>

More News

Related Links

Gulf Oil and Gas
Copyright Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.