SAN ANTONIO–(BUSINESS WIRE)–Abraxas Petroleum Corporation (NASDAQ:AXAS) (“Abraxas Petroleum” or the “Company”) today announced that it has priced an upsized underwritten public offering of 25,000,000 shares of its common stock at a public offering price of $2.40 per share. Abraxas Petroleum has granted the underwriters a 30-day option to purchase up to 3,750,000 additional shares of common stock.
The offering is expected to settle and close on or about January 25, 2017, subject to customary closing conditions. We plan to use the net proceeds from this offering (including any proceeds from the exercise of the underwriters’ option to purchase additional shares) to accelerate our drilling program with an expanded 2017 capital expenditure budget of approximately $110 million. We may also use such proceeds for general corporate purposes including acquisitions. We have historically drawn on our bank credit facility to fund our capital expenditures and intend to initially use most of the net proceeds from this offering to repay the amounts outstanding under this facility.