UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
February 24, 2004
Abraxas Petroleum Corporation
(Exact name of registrant as specified in its charter)
Nevada
(State of other jurisdiction of incorporation)
0-19118 74-2584033
(Commission File Number) (I.R.S. Employer Identification Number)
500 N. Loop 1604 East, Suite 100
San Antonio, Texas 78232
(Address of principal executive offices)
Registrant's telephone number,
including area code:
210-490-4788
Item 9. REGULATION FD DISCLOSURE
See attached Press Release
The following exhibits are filed as part of this report:
NUMBER DOCUMENT
99.1 Press release dated February 24, 2004
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ABRAXAS PETROLEUM CORPORATION
By: __/s/Chris Williford__________
Chris Williford
Executive Vice President, Chief Financial
Officer and Treasurer
Dated: February 24, 2004
Exhibit 99.1
NEWS RELEASE
ABRAXAS INCREASES SIZE AND REDUCES COST OF FIRST LIEN CREDIT FACILITY
SAN ANTONIO, TX (February 24, 2004) - Abraxas Petroleum Corporation (AMEX:
ABP) today announced that it has executed an amendment to its First Lien Credit
Facility resulting in enlarging the facility, reducing the current cost of the
credit to the Company, and improving certain covenants. Significant changes to
the facility include:
o Increasing the size of the facility from $50 million to $65 million,
o Reduction of interest rate from a current floating 9% to a floating
rate currently at approximately 7.5%,
o Extending the maturity from January 2006 to February 2007,
o $45 million of facility becomes a loan with no borrowing base
component,
o Improvement of certain financial covenant tests, and
o The outstanding balance under the amended facility is approximately
$51 million with another approximate $14 million of availability.
Abraxas President, Bob Watson, commented, "We believe that the amendment of this
facility demonstrates the value we have added through our continuing development
activities, as well as the continuing strength of the commodity markets. This
expanded facility removes some restrictions that were impacting our ability to
manage our assets and provides us with additional liquidity that we intend to
utilize to enhance shareholder value. Cheaper capital with an extended maturity
and less exposure to the cyclical nature of our business should allow us to
continue the process of improving our balance sheet and increasing value to our
shareholders."
Durham Capital Corporation acted as a financial advisor to the Company related
to this transaction.
Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas
exploitation and production company. The Company operates in Texas, Wyoming and
western Canada.
Safe Harbor for forward-looking statement: Statements in this release looking
forward in time involve known and unknown risks and uncertainties, which may
cause the Company's actual results in future periods to be materially different
from any future performance suggested in this release. Such factors may include,
but may not be necessarily limited to, changes in the prices received by the
Company for crude oil and natural gas. In addition, the Company's future crude
oil and natural gas production is highly dependent upon the Company's level of
success in acquiring or finding additional reserves. Further, the Company
operates in an industry sector where the value of securities is highly volatile
and may be influenced by economic and other factors beyond the Company's
control. In the context of forward-looking information provided for in this
release, reference is made to the discussion of risk factors detailed in the
Company's filing with the Securities and Exchange Commission during the past 12
months.
FOR MORE INFORMATION CONTACT:
Janice Herndon/Manager Corp. Communications
Telephone 210.490.4788
jherndon@abraxaspetroleum.com
www.abraxaspetroleum.com