San Antonio-based Abraxas Petroleum said Monday it is transforming into a pure-play Delaware Basin company by paying off all revolving credit with proceeds from the $87.2 million sale of Williston Basin assets of 3,500 acres and converting a term loan held by Angelo Gordon Energy Funding into preferred stock. The Williston assets were sold to Lime Rock Resources.
Bob Watson, president and CEO, said, “The restructuring positions Abraxas as an unlevered Delaware Basin pure play that can now access available capital sources to restart a drilling program in the Permian Basin. We now have the opportunity to drill and complete wells to grow our production.”