Abraxas Sells Assets to Focus on Shale

Abraxas’ $13 MIllion Deal

Abraxas’ $13 MIllion Deal

Abraxas is shifting assets to focus on the Eagle Ford and other shale plays.

Related: Abraxas to Drill in Atascosa County

Abraxas Petroleum Corporation announced this week that they are selling 14,000 acres in order to focus on major shale plays in Texas and North Dakota.

An SEC filing confirmed the $13 million dollar deal is with Houston-based, Frostwood Energy, LLC. The assets sold produced approximately 145 boepd (127 barrels of oil per day, 112 mcf of natural gas per day) on average during the month of June, 2016

What we’re doing now is focusing more now on unconventional oil and gas in South Texas, the Bakken (North Dakota), and the Permian Basin.
— Chief Financial Officer Geoffrey King

Abraxas has also signed a contract to sell the another 12,178 acre surface ranch in Pecos County, Texas that includes ½ of the Company’s minerals on the property for gross proceeds of $6.7 million. The company expects this transaction to close in November, 2016.

Abraxas  announced in July that they had begun the process to drill their first well that targets the Austin Chalk at Jourdanton in Atascosa County. The company spudded Bulls Eye 101H on June 16 and estimates that the well will be producing by September 2016. Executives estimate that the drilling and completion costs for this first well will be around $5.8 million, which Abraxas will shoulder alone after terminating talks for a potential joint venture on this project.

Read more at abraxaspetroleum.com