Abraxas Petroleum is selling Eagle Ford acreage and production in the company's WyCross area in McMullen County for $73 million.
The deal includes ~1,200 net acres from a 25% working interest in 5,986 gross (4,809.5 net) acres and net production of 655 boe/d (~90% oil). Proved reserves on the property were estimated at 3.7 million boe.
Abraxas retained ~4,000 net acres near Jourdanton in Atascosa County and ~400 net acres in the Cave area in McMullen County. Abraxas recently completed its second well on its Jourdanton area acreage and is in the process of drilling its first well in the Cave area in McMullen County.
“...Although the WyCross properties were certainly of the highest quality, they carried a low working interest and are now non-operated. We continue to identify additional lease blocks available in our targeted regions of the Eagle Ford and expect to be in a position to announce additional Eagle Ford acreage acquisitions in the near future.”
Mr. Watson also stated the company will focus on its high quality, operated assets. Abraxas was not the operator on the WyCross acreage and held a minority (25% WI) interest in the development.
Abraxas is expected to use the proceeds to pay down the company’s bank line and redeploy capital into operated lease blocks in the Eagle Ford and Bakken.
Read the full press release at abraxaspetroleum.com
