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

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San Antonio-based Abraxas Petroleu m (NASDAQ: AXAS) owns a 48 percent limited partnet stake inAbraxas Energy. The remainingv 52 percent of Abraxas Energy is ownex byprivate investors. Abraxas Petroleum reachedr an agreement with those outside investorsa to sell their sharesfor $6 per commonb unit. The investors will be paid in shares of AbraxasPetroleukm stock. This merger is subject to a definitive merger the negotiation of a new credit approval by the Abraxas Petroleum and Abraxasw Energy boardof directors, the holders of a majorityu of Abraxas Petroleum’s outstanding stock and other closing “The merger transaction should greatlt enhance the value of the combined entity for investorse of both Abraxas Petroleum and Abraxas Energy,” Abraxas’ Presidenf and CEO Bob Watson says.
“The merger will allow the combineed entity to increase its drilling activitt by reinvesting a greatefr portion of its cash flow into organiv growth projects throughout all our coreregionsx — which will encompassd the entire central portion of the United States from North Dakota to the Gulf Coast,” Watsonm adds.