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Wunderlich Securities Maintains Buy, $7 PT on Abraxas Petroleum

Wunderlich Securities reiterates its Buy rating on Abraxas Petroleum (NASDAQ: AXAS) as the company is on tract to divest assets and streamline.

Wunderlich Securities says, "Abraxas Petroleum (AXAS) is on track to become more streamlined in 2012. We have some visibility on divestitures in 2012: first to go will be the 2,880 acres in the Delaware Basin, followed by the South Texas Eagle Ford assets and the Canadian Pekisko Fairway oil project. We expect AXAS to end the year with lower debt and a focused asset base. Assuming $93/bbl oil (WTI) and $3.50/mcfe (HH), our estimated net asset value for AXAS is $7 per share: $5.00 for proved reserves, $2.90 for probable-possible and roughly $1.30 for debt."

AXAS closed at $3.87 a share on Friday.

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