McKenzie County producer Abraxas sells Powder River Basin assets
Bakken-linked operator Abraxas Petroleum has sold $11.1 million of its Powder River Basin assets. The San Antonio-based exploration and production firm that has multiple well locations in the Bakken of North Dakota, said it will continue to market its remaining assets in the Wyoming and Montana-based oil and gas play.
In North Dakota, Abraxas has recently spudded a four well pad in McKenzie County. Two of the wells on the pad that were previously brought online have produced more than 100,000 barrels of oil cumulative in four months.
In announcing its Powder River Basin asset sale, the company also said that a previously planned sale of property in Pecos County, Texas, has fallen through. Although the company retained 50 percent of the survey fees associated with the terminated sale, the company was not able to move 13,468 acres in the region.
After noting the company’s excellent drilling results in its Delaware Basin properties and the sale of its Powder River assets, Bob Watson, president and CEO, said the company was disappointed the counterparty walked in the eleventh hour from its contractual obligations. Both the remaining Powder River assets and the Pecos County assets will remain for sale. Eventual proceeds from each will be used to pay down debt in 2017.
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