Abraxas Petroleum Corp.
) announced the execution of a definitive agreement to sell its
Eagle Ford interests at WyCross in McMullen County, Texas. The
purchase consideration for the transaction is slated to be $73
million. However, the name of the buyer has not been disclosed by
The assets to be sold consist of approximately 1,200 net
acres, 3.7 million barrels of proved reserves. The assets
produced 655 barrels of oil equivalent per day (boepd) during the
month of Sep 2013. Abraxas plans to use the proceeds to pay down
its outstanding lines of credit, and then redeploy the credit
lines into additional lease blocks in both the Eagle Ford and
With the removal of the WyCross production volumes and two
additional WyCross well completions in 2013, Abraxas revised its
2013 production and exit rate guidance. The company now expects
2013 production to average 4,300-4,350 boepd with an exit rate of
approximately 4,500 boepd.
Abraxas Petroleum Corporation is an independent energy company
engaged primarily in the acquisition, exploration, exploitation
and production of crude oil and natural gas. The San
Antonio-based company has operations across regions of the United
States in the Rocky Mountains, Permian Basin, onshore Gulf Coast
and in the province of Alberta, Canada.
Going forward, Abraxas Petroleum seeks to complement its
acquisition and development activities by selectively
participating in exploration projects with experienced industry
partners. This would be complemented by the company's strong
balance sheet, steady improvement in lease operating expense
(LOE) driven by the divestiture of high LOE properties and
production from new wells.
Currently, Abraxas Petroleum has a Zacks Rank #1 (Strong Buy).
Other stocks worth consideration in the exploration and
production sector include
Bonanza Creek Energy Inc.
Clayton Williams Energy, Inc.
Harvest Natural Resources Inc.
). All the stocks sport a Zacks Rank #1 (Strong Buy).
ABRAXAS PETE/NV (AXAS): Free Stock Analysis
BONANZA CREEK (BCEI): Free Stock Analysis
WILLIAMS(C)ENGY (CWEI): Free Stock Analysis
HARVEST NATURAL (HNR): Free Stock Analysis
To read this article on Zacks.com click here.