Abraxas Petroleum Completes Sale Of WyCross Assets For $71.4 Mln

(RTTNews) - Abraxas Petroleum Corp. (AXAS), Monday said it closed the previously announced sale of its WyCross assets for net proceeds of $71.4 million after accounting for all fees and purchase price adjustments. The company said the proceeds from the sale were used to repay borrowings on the company's bank line and will be ultimately redeployed into additional Bakken and Eagle Ford opportunities.

Further, the company said it recently monetized several non-core assets in North Dakota, Wyoming and Texas at the December Oil and Gas Clearinghouse Auction for gross proceeds of nearly $3.6 million. The assets sold produced about 54 boepd; 33 barrels of oil per day, 125 mcf of gas per day.

Looking ahead, the company said its board recently approved a 2014 capital budget of $105 million. About $10 million is budgeted to be spent towards purchase of additional leasehold in Abraxas' core areas, the Bakken and Eagle Ford. Taking this capital budget into account, Abraxas expects 2014 production to average between 4,900 and 5,100 boepd.