Abraxas Petroleum To Sell Eagle Ford Interests At WyCross For $73 Mln

(RTTNews) - Abraxas Petroleum Corp. (AXAS) announced Monday that it executed a definitive agreement to sell its Eagle Ford interests at WyCross in McMullen County, Texas for $73 million.

Recently, Abraxas 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 and produced 655 boepd net to Abraxas during the month of September 2013.

Abraxas stated that it 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.

With the removal of the WyCross production volumes and two additional WyCross well completions in 2013, Abraxas is revising its 2013 production and exit rate guidance. Abraxas now expects 2013 production to average 4,300-4,350 boepd with an exit rate of approximately 4,500 boepd.