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Abraxas buys more oil wells

  |   Dec. 12, 2007 at 4:21 PM
SAN ANTONIO, Dec. 12 (UPI) -- Abraxas Petroleum Corp. announced it has purchased oil and gas properties in the United States worth $140 million from St. Mary Land & Exploration Co.

The acquisition by the subsidiary of Abraxas Energy Partners L.P. is subject to closing conditions and purchase price adjustments and is expected to close during the first quarter of 2008.

The properties are in the Rocky Mountains and Mid-Continent regions of the United States, and include about 1,500 wells and estimated reserves of about 10,250 million barrels of oil.

"We are quite pleased to announce Abraxas Energy's first acquisition since its formation. As a result of the acquisition, our percentage of proved developed producing reserves, percentage of oil production, and our R/P ratio will increase significantly and complement our existing asset base with a more diverse, stable long-lived production profile. We expect the acquisition to be immediately accredited to distributable cash flow per unit," said Bob Watson, president and chief executive officer.

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