SAN ANTONIO, Jul 01, 2011 (BUSINESS WIRE) --
Abraxas Petroleum Corporation (NASDAQ:AXAS) today announced that it has
closed its second amended and restated credit facility.
The $300 million amended and restated credit facility has an initial
borrowing base of $125 million, of which approximately $90 million was
drawn at closing. Borrowings under the credit facility will bear an
interest rate, based on utilization, of LIBOR plus 2.25% - 3.25%. The
tenor on the credit facility is four years and expires in 2015.
Société Générale acted as administrative agent and issuing lender, SG
Americas Securities, LLC acted as sole bookrunner, and SG Americas
Securities, LLC, The Royal Bank of Scotland plc and ING Capital LLC
acted as joint lead arrangers for the amended and restated credit
"We are pleased to announce that we were able to capitalize on the
improved credit markets which greatly reduced our interest costs as we
will save between $6.0-8.0 million, depending on utilization, over the
life of the credit facility," commented Bob Watson, Abraxas' President
Abraxas Petroleum Corporation is a San Antonio based crude oil and
natural gas exploration and production company with operations across
the Rocky Mountain, Mid-Continent, Permian Basin and onshore Gulf Coast
regions of the United States and in the province of Alberta, Canada.
Safe Harbor for forward-looking statements: Statements in this release
looking forward in time involve known and unknown risks and
uncertainties, which may cause Abraxas' actual results in future periods
to be materially different from any future performance suggested in this
release. Such factors may include, but may not be necessarily limited
to, changes in the prices received by Abraxas for its crude oil and
natural gas. In addition, Abraxas' future crude oil and natural gas
production is highly dependent upon Abraxas' level of success in
acquiring or finding additional reserves. Further, Abraxas operates in
an industry sector where the value of securities is highly volatile and
may be influenced by economic and other factors beyond Abraxas' control.
In the context of forward-looking information provided for in this
release, reference is made to the discussion of risk factors detailed in
Abraxas' filings with the Securities and Exchange Commission during the
past 12 months.
SOURCE: Abraxas Petroleum Corporation
Abraxas Petroleum Corporation
Barbara M. Stuckey, 210-490-4788
Vice President - Corporate Finance