Monday, June 17, 2013

For Investors Only: AXAS Activity Today; Sells Non-Operated Bakken Acreage To A Coal Company

Abraxas Petroleum Corp. announces signing of non-operated bakken definitive agreement; co also reports inclusive of the non-operated Bakken sale, Abraxas has divested ~502 boepd for gross proceeds of $47.3 mln: AXAS signed an agreement to sell the majority of the Company's non-operated Bakken properties to Natural Resource Partners (NRP) for $35.3 mln plus the assumption of an estimated $8.1 mln in AFEs from 22 wells that are producing, have recently been drilled or completed or Abraxas has elected to participate.

AP is also reporting:
Natural Resource Partners LP said Monday that it reached a deal to buy non-operated working interests in producing oil and gas properties in North Dakota and Montana from Abraxas Petroleum Corp. for about $35.3 million in cash. 
The acquisition consists of about 13,500 net acres with an estimated average working interest of 11 percent in the Bakken and Three Forks play. It includes about 120 producing wells, along with interests in 22 wells that are in various stages of development, NRP said.
$35 million / 13,500 acres = $2,500 / acre.

My data suggested that Abraxas had 21,000 net acres in the Bakken (ND and MT). If that is accruate, selling off 13,500 net acres certainly decreased its footprint in the Bakken.

One year ago, Abraxas CAPEX:
  • Bakken: 69%
  • Eagle Ford: 0%
  • Other (Powder River, Pekisko, Permian, other): 31%
Now, in 2013: Abraxas CAPEX:
  • Bakken: 68%
  • Eagle Ford: 27%
  • Permian: 1%
  • Other: 4%
Cost of wells for Abraxas ranged from $8.7 million (Jore Federal) to $13.0 million (Ravin) -- slide 19 of its May, 2013, presentation.

Meanwhile, this is the profile for NRP:
Natural Resource Partners L.P., through its subsidiaries, engages in the ownership, management, and leasing of mineral properties in the United States. It owns coal reserves in Appalachia, the Illinois Basin, and the Western United States, as well as lignite reserves in the Gulf Coast region. The company leases its reserves to mine operators in exchange for royalty payments. It also owns preparation plants and related material handling facilities; and handling and transportation infrastructure, as well as owns and manages aggregate reserves.

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