Abraxas Petroleum Corp. said last week it has sold $34 millionin Wyoming gas assets to Samson Resources Co., a private Tulsa,OK-based oil and gas firm. The assets were held by Abraxas’subsidiary, Abraxas Wamsutter L.P.

The sale included interests in 57 natural gas wells and grossleasehold of approximately 15,000 acres. The properties are locatedin Sweetwater and Carbon Counties, WY. Abraxas originally soldthese properties to Abraxas Wamsutter L.P. in November 1998. Thecompany did not return calls before press time.

The sale will result in Abraxas booking a gain in the firstquarter 2000 of $33 million with a corresponding increase in bookequity. Proceeds will be used to fund Abraxas’ 2000 capitalexpenditure program, which is focused primarily on horizontalexploitation of existing properties.

Abraxas said the sale validates its joint venture approach tonon-core properties. Abraxas owned a 1% interest in AbraxasWamsutter L.P. which, under the terms of the partnership agreement,increased as certain rate of return requirements of the L.P. weresatisfied. As a result of the sale, the receipt of Abraxas’ back-invalue for these properties was greatly accelerated.

While Abraxas gets rid of its non-core properties, its coreholdings performed at a high rate of success last year. U.S.reserves have increased from 144.8 Bcfe in 1998 to 161.5 Bcfe in1999. Canadian reserves increased from 98.9 Bcfe to 104.4 Bcfe inthe same period. Overall, Abraxas produced 70.4 MMcf/d in 1999, upfrom 68.3 MMcf/d in 1998.

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