Abraxas Petroleum Announces Pricing of Upsized Common Stock Offering
January 20 2017 - 7:43AM
Business Wire
Abraxas Petroleum Corporation (NASDAQ:AXAS) (“Abraxas Petroleum”
or the “Company”) today announced that it has priced an upsized
underwritten public offering of 25,000,000 shares of its common
stock at a public offering price of $2.40 per share. Abraxas
Petroleum has granted the underwriters a 30-day option to purchase
up to 3,750,000 additional shares of common stock.
The offering is expected to settle and close on or about January
25, 2017, subject to customary closing conditions. We plan to use
the net proceeds from this offering (including any proceeds from
the exercise of the underwriters’ option to purchase additional
shares) to accelerate our drilling program with an expanded 2017
capital expenditure budget of approximately $110 million. We may
also use such proceeds for general corporate purposes including
acquisitions. We have historically drawn on our bank credit
facility to fund our capital expenditures and intend to initially
use most of the net proceeds from this offering to repay the
amounts outstanding under this facility.
Seaport Global Securities LLC, Canaccord Genuity Inc. and
Stephens Inc. are acting as joint book-running managers for the
offering. Copies of the preliminary prospectus supplement for the
offering may be obtained on the website of the Securities and
Exchange Commission, www.sec.gov, or by contacting
Seaport Global Securities LLC, 360 Madison Avenue, 21st Floor, New
York, NY 10017, or by telephone at: (646) 264‐5629, or by email
at vkump@seaportglobal.com; Canaccord Genuity Inc.,
ATTN: Syndicate Department, 99 High Street, 12th Floor, Boston, MA
02110, or by telephone at (617) 371-3900; or Stephens Inc.’s
Prospectus Department at Stephens Inc., 111 Center Street, Little
Rock, AR 72201, ATTN: Prospectus Department
(prospectus@stephens.com) or by telephone at (501)
377-2131.
The common stock will be issued and sold pursuant to an
effective shelf registration statement on Form S-3 previously filed
with the Securities and Exchange Commission. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy these securities, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such state or
jurisdiction. This offering may only be made by means of a
prospectus supplement and related base prospectus.
Abraxas Petroleum Corporation is a San Antonio based crude oil
and natural gas exploration and production company with operations
across the Rocky Mountain, Permian Basin and South Texas regions of
the United States.
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 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170120005251/en/
Abraxas Petroleum CorporationGeoffrey King, 210-490-4788Vice
President – Chief Financial
Officergking@abraxaspetroleum.comwww.abraxaspetroleum.com
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