With a private equity (PE) infusion, Abraxas Petroleum Corp. is ready to restart oil and natural gas development in the Permian Basin as a Delaware pure-play, the San Antonio, TX-based independent said Monday.

drilling rig

The company, which has faced financial issues over the last couple of years, said it completed a strategic review to consider its options. To that end, the Williston Basin assets have been sold to Lime Rock Resources for $87.2 million. Abraxas also has repaid all of its revolving credit facility.

Key, however, is the exchange of a second lien (2L) term loan held by Angelo Gordon Energy Funding LLC (AG), which was traded for preferred stock. “For some time, Abraxas has been trying to find a solution that would resolve the indebtedness held by our lenders, while at the...