* To use $10 mln to repay term loan
* Rest to be used to up budget, debt reduction
March 15 Abraxas Petroleum Corp (AXAS.O) said
it sold properties for about $11.2 million as part of its
initiative to divest non-operated, non-core assets to generate
cash to repay debt and boost its capital spending.
The oil and gas explorer and producer said it will use the
first $10 million of the net proceeds from the divestitures to
repay a term loan portion of its credit facility and allocate
the remaining for further debt reduction and its capital
The divested properties produced about 142 barrels of oil
equivalent per day (boepd), representing 3 percent of Abraxas'
daily net production, and had about 606 thousand boe of proved
reserves, 2 percent of the company's net proved reserves.
Abraxas also said it identified an additional $20 to $30
million of similar non-core assets that it will attempt to
divest on similar terms over the next several months. Shares of
the San Antonio, Texas-based company closed at $2.08 Monday on
(Reporting by Antonita Madonna Devotta in Bangalore; Editing
by Jarshad Kakkrakandy)