Abraxas Announces Pricing of the Grey Wolf Exploration IPO

Abraxas Petroleum Corporation (AMEX: ABP) announced that Grey Wolf Exploration Inc., its wholly-owned Canadian subsidiary, has priced its previously announced initial public offering of 26.9 million common shares at CDN $2.80 per share.

Utilizing a current exchange rate of 0.81 yields US $2.27 per share. All amounts below are expressed in US dollars.

The 17.8 million treasury shares, offered by Grey Wolf, will generate net proceeds sufficient to repay its $35 million term loan and to eliminate its working capital deficit. Net proceeds from Abraxas' secondary offering of 9.1 million shares (approximately $20 million) will be applied to the repayment of its $25 million bridge loan. If all of the over-allotment shares are exercised, net proceeds of approximately $8 million will be applied to the $25 million bridge loan first, then to general corporate purposes. Closing is anticipated to occur on February 24th.

Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploitation and production company. Abraxas operates in Texas, Wyoming and western Canada.


Our Privacy Pledge

Most Popular Articles

Brent Crude Oil : $49.98/BBL 1.59%
Light Crude Oil : $49.18/BBL 1.56%
Natural Gas : $2.73/MMBtu 1.44%
Updated in last 24 hours