ABRAXAS
ABRAXAS PETROLEUM CORPORATION
500 N. Loop 1604 East, Suite 100 - San Antonio, Texas 78232
P.O. Box 701007 - San Antonio, Texas 78270-1007
Office: 210/490-4788 - Exec/Acctg Fax: 210-490-8816
Land Prod. Fax: 210/490-8837
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NEWS RELEASE
FOR IMMEDIATE RELEASE
ABRAXAS PETROLEUM CORPORATION ANNOUNCES
COMMENCEMENT OF PRIVATE PLACEMENT
SAN ANTONIO, - November 5, 1996 - Abraxas Petroleum Corporation (NASDAQ: AXAS)
announced today that it has priced its private placement of $215,000,000 Senior
Notes due 2004 at an annual interest rate of 11.5%. The net proceeds to the
Company will be used for the repayment of all amounts outstanding under the
Company's credit facility with Bankers Trust Company and ING (U.S.)Capital
Corporation and to consummate the previously announced acquisitions of CGGS
Canadian Gas Gathering Systems Inc. And of the Portilla and Happy Fields in
Texas.
The notes have not been registered under the Securities Act of 1933, as amended
(the "Securities Act"), and may not be offered or sold in the United States
without registration under the Securities Act or pursuant to an exemption
therefrom.
Closing is anticipated to occur on November 14, 1996.
Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas
exploration and production company with operations primarily along the Texas
Gulf Coast, in the Permian Basin of western Texas, western Canada and
southwestern Wyoming.
FOR FURTHER INFORMATION CONTACT:
Jack M. Roney J. Desmond Towey
Abraxas Petroleum Corporation George Robinson
Director of Corporate Development Towey & Associates
210/490-4788 212/888-7600
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