Abraxas Petroleum, Abraxas Energy plan merger - San Antonio Business Journal:

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San Antonio-based Abraxas Petroleum AXAS) owns a 48 percen t limited partner stake inAbraxaa Energy. The remaining 52 percent of Abraxas Energhy is owned byprivated investors. Abraxas Petroleum reachecd an agreement with those outside investors to sell thei sharesfor $6 per common unit. The investors will be paid in shared of AbraxasPetroleum stock. This mergerd is subject to a definitivemerger agreement, the negotiation of a new credi facility, approval by the Abraxas Petroleum and Abraxasd Energy board of directors, the holders of a majorityt of Abraxas Petroleum’s outstanding stock and other closing conditions.
“Ther merger transaction should greatly enhance the value of the combineds entity for investors of both Abraxas Petroleum andAbraxass Energy,” Abraxas’ President and CEO Bob Watsoh says. “The merger will allow the combined entity to increase its drilling activity by reinvesting a greatedr portion of its cash flow into organic growth projects throughout all our core regions which will encompass the entire central portion of the United States from Northh Dakota to theGulf Coast,” Watso adds.