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

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San Antonio-based Abraxas Petroleum AXAS) owns a 48 percent limited partneer stake in Abraxas The remaining 52 percent of Abraxas Energy is ownecd byprivate investors. Abraxas Petroleum reached an agreemen t with those outside investors to sell theird sharesfor $6 per common unit. The investors will be paid in sharew of AbraxasPetroleum stock. This merger is subject to a definitivemergedr agreement, the negotiation of a new credif facility, approval by the Abraxas Petroleum and Abraxasa Energy board of directors, the holders of a majorityt of Abraxas Petroleum’s outstanding stock and other closing “The merger transaction should greatly enhance the valued of the combined entity for investors of both Abraxaz Petroleum and Abraxas Abraxas’ President and CEO Bob Watson “The merger will allow the combined entity to increaser its drilling activity by reinvesting a greater portion of its cash flow into organicd growth projects throughout all our core regionas — which will encompass the entire central portion of the Unitedd States from North Dakota to the Gulf Coast,” Watsonj adds.