Abraxas Energy buys oil and gas fields for $140 mln

Deals

US-based Abraxas Energy Partners LP has struck a deal on buying oil and gas properties from St. Mary Land & Exploration Co. for $140 million.

Under the terms of the agreement, Abraxas Energy will buy 1,500 wells with estimated proved reserves of 10.25 million barrels of oil equivalent as of December 1. These properties are located in the Rockies and Mid-Continent regions and are producing about 2,050 barrels of oil equivalent per day.

Up to 52% of these properties are oil producing, while the balance are natural-gas producing. The acquisition is subject to customary closing conditions and purchase price adjustments and is expected to close during the first quarter of 2008.

Abraxas Energy intends to initially finance the purchase with borrowed money from an amended credit facility structured by Societe Generale. Abraxas Energy had been planning an initial public offering. However, because of this acquisition, those plans are being pushed back to a later date.

San Antonio-based Abraxas Petroleum Corp. created Abraxas Energy as a limited partnership in mid-2007 in partnership with institutional investors. Abraxas Petroleum raised $100 million off the sale of limited partnership units to institutional investors. (The company, which is the general partner, still owns a 47% stake in the limited partnership.) (San Antonio Business Journal)

ADVERTISEMENT

Pandemic has only moderate impact on big companies Analysis

Pandemic has only moderate impact on big companies

Parl't to vote on groundwork for commercial accommodation ra... Parliament

Parl't to vote on groundwork for commercial accommodation ra...

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest re-launches airport shuttle bus City

Budapest re-launches airport shuttle bus

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.