Abraxas Petroleum Corporation Announces Debt Repurchase and Subsequent Cash Flow Improvement.Business Editors & Energy Writers SAN ANTONIO--(BUSINESS WIRE)--June 29, 2000 Abraxas Petroleum Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AXAS) announced that it has successfully purchased and retired $7.1 million, face amount, of its 11 1/2% senior notes. The transactions reduce long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and fixed charges and will improve annual cash flow by $816,000 going forward. Cash on hand coupled with this improved cash flow leaves the Company with adequate liquidity to satisfy fixed charge requirements and fund its aggressive capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. program. The purchases were open market transactions which follow the Company's May 26, 2000 announcement of its Board of Director's authorization to repurchase both debt and equity securities previously issued by the Company. Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploration and production company that also processes natural gas. It operates primarily along the Texas Gulf Coast, in the Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. of western Texas, western Canada
Western Canada, commonly referred to as the West and Wyoming. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : Statements in this release looking forward in time involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to be materially different from any future performance suggested in this release. Such factors may include, but may not be necessarily limited to, changes in the prices received by the Company for crude oil and natural gas. In addition, the Company's future crude oil and natural gas production is highly dependent upon the Company's level of success in acquiring or finding additional reserves. Further, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company's control. In the context of forward-looking information provided for in this release, reference is made to the discussion of risk factors detailed in the Company's filing with the Securities and Exchange Commission during the past 12 months. |
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