Abraxas Petroleum Corporation Nets $34 Million On Sale of Certain Wyoming Assets.Business Editors & Energy Writers SAN ANTONIO--(BUSINESS WIRE)--March 31, 2000 Abraxas A`brax´as n. 1. A mystical word used as a charm and engraved on gems among the ancients; also, a gem stone thus engraved. Petroleum Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:AXAS) announced today the sale of a group of non-core properties, the assets held by Abraxas Wamsutter L.P., as well as certain other contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. assets. Abraxas received approximately $34 million in cash for its interests, subject to certain post closing adjustments, further strengthening Abraxas' balance sheet. The sale will result in Abraxas booking a gain in the first quarter 2000 of $33 million with a corresponding increase in book equity. Proceeds will be used to fund Abraxas' 2000 capital expenditure program which is focused primarily on horizontal exploitation of existing properties. The sale validates Abraxas' joint venture approach to non-core properties. Abraxas owned a 1% interest in Abraxas Wamsutter L.P. which, under the terms of the partnership agreement, increased as certain rate of return requirements of the L.P. were satisfied. As a result of the sale, the receipt of Abraxas' back-in value for these properties was greatly accelerated. The sale included interests in 57 natural gas wells and gross leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. of approximately 15,000 acres. The properties are located in Sweetwater and Carbon Counties, Wyo. The buyer of the properties is Samson Resources Company, a private Tulsa, Oklahoma-based oil and gas company. Abraxas originally sold these properties to Abraxas Wamsutter L.P. in November 1998. 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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