Abraxas Petroleum Corp. and Blue Stone Oil & Gas LLC have signed a joint venture (JV) agreement to develop the Eagle Ford Shale play in South Texas. San Antonio-based Abraxas will contribute 8,333 net acres in the Eagle Ford to the JV -- to be called Blue Eagle Energy LLC -- and will receive a $25 million equity interest in the JV, while Denver-based Blue Stone will contribute $75 million in cash for a 75% equity interest. Blue Eagle Energy's subject area will encompass 12 counties across the Eagle Ford Shale for expected future acreage acquisitions. Abraxas will operate the JV's wells and Blue Stone will manage its day-to-day business affairs.

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