Abraxas Signs Definitive Agreement for Nordheim Project; Offers Financial Update

Abraxas (NASDAQ: AXAS) today signed an agreement to sell the Company's 25% working interestat the Nordheim Project in the Eagle Ford shale to a large institutional buyerfor proceeds of $19.1mm. The sale is subject to customary closing conditionsand purchase price adjustments and reflects an effective date of September 1,2012. The asset consists of 544 net acres in DeWitt County, Texas andapproximately 64 boepd (56% gas; 26% NGLs; 26% oil) of net production. Abraxaswill retain the rights to its Edwards production, reserves and upside acrossboth its Nordheim and Wagner lease blocks. Closing is scheduled for December17, 2012. Petrie Partners acted as financial advisor for Abraxas on the sale.Financial UpdatePer the Abraxas' November 12, 2012 release, the Company's borrowing base wasrecently raised to $150mm from its previous level of $140mm. As of quarter endSeptember 30, 2012, the Company had $134mm drawn on the facility and $2.6mm incash. The $150mm borrowing base already reflects the removal of reserves andproduction associated with the Nordheim sale. In addition to the $19.1mmNordheim sale, the company recently announced the sale of its Alberta Basinproperties in Montana for $2.85mm. The approximately $22mm of combinedproceeds from these sales will immediately go to reducing borrowings on therevolver, which stood at $134mm at quarter end. Thus, pro forma liquidity postthe sales will reflect current borrowings, less net proceeds from the sales,compared to a $150mm borrowing base.