Abraxas Petroleum plans to repay debt with asset sale proceeds

By Sara Rosenberg

New York, May 17 - Abraxas Petroleum Corp. has identified $20 million to $30 million of non-core assets that it will attempt to divest over the next several months, and it plans to use about 50% of the net proceeds to repay debt, according to a 10-Q filed with the Securities and Exchange Commission on Monday.

The remaining 50% will be used for the company's capital program.

The company already sold certain non-core assets for total net proceeds of about $11 million during the fourth quarter of 2009 and the first quarter of 2010.

The first $10 million of the net proceeds from those completed asset sales was used to repay term loan borrowings.

Abraxas Petroleum is a San Antonio-based crude oil and natural gas exploration and production company.

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