ACQUIRED PROPERTIES
NOTES TO STATEMENTS OF REVENUES AND DIRECT OPERATING EXPENSES
FOR THE YEARS ENDED DECEMBER 31, 2007, 2006, AND 2005
(1)
|
Basis of Presentation
|
On January 31, 2008, Abraxas Operating, LLC (“Abraxas
Operating”) acquired certain producing oil and gas properties
(the ”Acquired Properties”) from St. Mary Land & Exploration Company
(“St. Mary”). The Acquired Properties are net interests in oil and gas
producing properties located in mature producing fields in the Rocky Mountain,
Mid-Continent, Permian Basin, Arklatex, and Gulf Coast regions of the United States that
have established production profiles.
Oil and gas production revenues in the accompanying statements of revenues
and direct operating expenses are recognized on the sales method. Under this method,
revenues are recognized based on actual volumes of oil and gas sold to purchasers. Direct
operating expenses are recognized on the accrual method.
During the periods presented, the Acquired Properties were not accounted for
or operated as a separate division by the former owners. Accordingly, full separate
financial statements prepared in accordance with generally accepted accounting principles
do not exist and are not practicable to obtain in these circumstances.
The statements of revenue and direct operating expenses of the Acquired
Properties were derived from the historical accounting records of St. Mary and vary from a
statement of operations in that they do not show certain expenses, which were incurred in
connection with the ownership of the properties, such as general and administrative
expense, interest expense, income taxes, or other expenses of an indirect nature. These
expenses were not separately allocated to the Acquired Properties in St. Mary’s
historical financial records and any pro forma allocation would not be a reliable estimate
of what these expenses would actually have been had the Acquired Properties been operated
historically as a stand alone entity. In addition, these allocations, if made using
historical general and administrative structures and tax burdens, would not produce
allocations that would be indicative of the historical performance of the Acquired
Properties had they been assets of the buyer, due to the greatly varying size, structure,
and operations between Abraxas Operating and St. Mary. The statements also do not include
provisions for depletion, depreciation, amortization, and asset retirement obligation
liability accretion as such amounts would not be indicative of future costs of those
expenses which would be incurred by Abraxas Operating upon allocation of the purchase
price. Accordingly, the financial statements and other information presented are not
indicative of the financial condition and results of operations of the Acquired Properties,
but rather simply represent the historical operating results associated with the direct
operations of the Acquired Properties.
Historical financial statements representing financial position, results of
operations and cash flows required by generally accepted accounting principles are not
presented as such information is not readily available on an individual property basis.
Accordingly, the statements of revenue and direct operating expenses are presented in
accordance with Staff Accounting Bulletin Topic 2-D,
Financial
Statements of Oil and Gas Exchange Offers.
(2)
|
Use of Estimates in the Preparation of Financial
Statements
|
Preparation of the accompanying financial statements in conformity with
generally accepted accounting principles requires the use of estimates and assumptions that
affect the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
6
(3)
|
Oil and Gas Reserve Quantities
(Unaudited)
|
For all years presented, St. Mary personnel prepared the reserve
estimates for the Acquired Properties. Selected reserves associated with properties
included in the Acquired Properties had been prepared or reviewed by Ryder Scott Company,
L.P. (“Ryder Scott”) within the overall reserve preparation process utilized by
St. Mary. The involvement of Ryder Scott was incidental to the Acquired Properties, since
the sale of the Acquired Properties had not been contemplated by St. Mary at the time of
preparation in earlier periods. Reserve estimates are inherently imprecise and estimates of
new discoveries and undeveloped locations are more imprecise than estimates of established
proved producing oil and gas properties. Accordingly, these estimates are expected to
change as future information becomes available.
Proved oil and gas reserves are the estimated quantities of crude oil,
natural gas, and condensate that geological and engineering data demonstrate with
reasonable certainty to be recoverable in future years from known reservoirs under existing
economic and operating conditions. Proved developed oil and gas reserves are those expected
to be recovered through existing wells with existing equipment and operating methods. All
of the proved reserves are located in the continental United States.
Presented below is a summary of the changes in estimated reserves of the
Acquired Properties:
|
|
For the Years Ended December 31,
|
|
|
|
2007
|
|
|
|
2006
|
|
|
|
2005
|
|
|
|
Oil or
|
|
|
|
|
|
|
|
Oil or
|
|
|
|
|
|
|
|
Oil or
|
|
|
|
|
|
|
|
Condensate
|
|
|
|
Gas
|
|
|
|
Condensate
|
|
|
|
Gas
|
|
|
|
Condensate
|
|
|
|
Gas
|
|
|
|
(MBbl)
|
|
|
|
(MMcf)
|
|
|
|
(MBbl)
|
|
|
|
(MMcf)
|
|
|
|
(MBbl)
|
|
|
|
(MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Developed and undeveloped:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
3,851
|
|
|
|
18,497
|
|
|
|
4,209
|
|
|
|
20,038
|
|
|
|
2,934
|
|
|
|
13,923
|
|
Revisions of previous estimates
|
|
634
|
|
|
|
(553
|
)
|
|
|
(17
|
)
|
|
|
(1,518
|
)
|
|
|
467
|
|
|
|
457
|
|
Discoveries and extensions
|
|
16
|
|
|
|
93
|
|
|
|
68
|
|
|
|
1,498
|
|
|
|
230
|
|
|
|
753
|
|
Purchases of minerals in place
|
|
—
|
|
|
|
—
|
|
|
|
6
|
|
|
|
803
|
|
|
|
1,011
|
|
|
|
7,157
|
|
Production
|
|
(407
|
)
|
|
|
(2,210
|
)
|
|
|
(415
|
)
|
|
|
(2,324
|
)
|
|
|
(433
|
)
|
|
|
(2,252
|
)
|
End of year
|
|
4,094
|
|
|
|
15,827
|
|
|
|
3,851
|
|
|
|
18,497
|
|
|
|
4,209
|
|
|
|
20,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved developed reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
3,658
|
|
|
|
17,320
|
|
|
|
4,021
|
|
|
|
18,126
|
|
|
|
2,926
|
|
|
|
13,759
|
|
End of year
|
|
4,012
|
|
|
|
14,780
|
|
|
|
3,658
|
|
|
|
17,320
|
|
|
|
4,021
|
|
|
|
18,126
|
|
(4)
|
Standardized Measure of Discounted Future Net Cash
Flows (Unaudited)
|
Statement of Financial Accounting Standards No. 69, “Disclosures about
Oil and Gas Producing Activities” (“SFAS No. 69”) prescribes guidelines
for computing a standardized measure of future net cash flows and changes therein relating
to estimated proved reserves. All guidelines, which are briefly discussed below, have been
followed.
Future cash inflows and future production and development costs are
determined by applying benchmark prices and costs, including transportation, quality, and
basis differentials, in effect at year-end to the year-end estimated quantities of oil and
gas to be produced in the future. Each operated property is also charged with field-level
overhead in the estimated reserve calculation. Future income taxes have not been considered
as the Acquired Properties are not a tax paying entity. The resulting future net cash flows
are reduced to present value amounts by applying a ten percent annual discount
factor.
7
Future operating costs are determined based on estimates of expenditures to
be incurred in developing and producing the proved oil and gas reserves in place at the end
of the period, using year-end costs and assuming continuation of existing economic
conditions, plus overhead incurred by the central administrative office attributable to
operating activities.
The following disclosure does not include the effect of any income taxes.
While this is a departure from the prescribed methodology of calculating the standardized
measure, it is believed to be appropriate as the basis of the accompanying financial
statements relates only to direct revenues and operating expenses, without regard for
income taxes. Therefore the presentation of the standardized measure without income taxes
is more comparable.
The assumptions used to compute the standardized measure are those
prescribed by the Financial Accounting Standards Board and the Securities and Exchange
Commission, except for the exclusion of the effect of income taxes as discussed previously.
These assumptions do not necessarily reflect the expectations of actual revenues to be
derived from those reserves, nor their present value. The limitations inherent in the
reserve quantity estimation process, as discussed previously, are equally applicable to the
standardized measure computations since these estimates are the basis for the valuation
process. The following prices as adjusted for transportation, quality, and basis
differentials were used in the calculation of the standardized measure:
|
As of December 31,
|
|
2007
|
|
2006
|
|
2005
|
|
|
|
|
|
|
Gas (per Mcf)
|
$ 6.48
|
|
$ 4.95
|
|
$ 7.60
|
Oil (per Bbl)
|
$ 88.09
|
|
$ 53.08
|
|
$ 57.37
|
The following summary sets forth the future net cash flows relating to the
Acquired Properties based on the standardized measure prescribed in SFAS No. 69:
|
|
As of December 31,
|
|
|
|
2007
|
|
|
|
2006
|
|
|
|
2005
|
|
|
|
(In thousands)
|
|
Future cash inflows
|
|
$
|
462,739
|
|
|
|
$
|
295,766
|
|
|
|
$
|
394,454
|
|
Future production costs
|
|
|
(195,552
|
)
|
|
|
|
(132,499
|
)
|
|
|
|
(153,464
|
)
|
Future development costs
|
|
|
(4,910
|
)
|
|
|
|
(5,012
|
)
|
|
|
|
(6,585
|
)
|
Future net cash flows
|
|
|
262,277
|
|
|
|
|
158,255
|
|
|
|
|
234,405
|
|
10 percent annual discount
|
|
|
(120,514
|
)
|
|
|
|
(66,993
|
)
|
|
|
|
(100,714
|
)
|
Standardized measure of discounted
future net cash flows
|
|
$
|
141,763
|
|
|
|
$
|
91,262
|
|
|
|
$
|
133,691
|
|
The principle sources of change in the standardized measure of discounted
future net cash flows are:
|
|
For the Years Ended December 31,
|
|
|
|
2007
|
|
|
|
2006
|
|
|
|
2005
|
|
|
|
(In thousands)
|
|
Standard measure, beginning of year
|
|
$
|
91,262
|
|
|
|
$
|
133,691
|
|
|
|
$
|
63,842
|
|
Sales of oil and gas produced, net of production
costs
|
|
|
(23,785
|
)
|
|
|
|
(22,752
|
)
|
|
|
|
(25,500
|
)
|
Net changes in prices and production costs
|
|
|
60,454
|
|
|
|
|
(33,234
|
)
|
|
|
|
34,913
|
|
Extensions and discoveries, net of production
costs
|
|
|
991
|
|
|
|
|
6,305
|
|
|
|
|
5,647
|
|
Purchase of minerals in place
|
|
|
—
|
|
|
|
|
1,004
|
|
|
|
|
40,905
|
|
8
Development costs incurred during the year
|
|
|
335
|
|
|
|
|
742
|
|
|
|
|
56
|
|
Changes in estimated future development costs
|
|
|
(130
|
)
|
|
|
|
814
|
|
|
|
|
836
|
|
Revisions of previous quantity estimates
|
|
|
12,380
|
|
|
|
|
(3,649
|
)
|
|
|
|
10,304
|
|
Accretion of discount
|
|
|
9,126
|
|
|
|
|
13,369
|
|
|
|
|
6,384
|
|
Changes in timing and other
|
|
|
(8,870
|
)
|
|
|
|
(5,028
|
)
|
|
|
|
(3,696
|
)
|
Standardized measure, end of year
|
|
$
|
141,763
|
|
|
|
$
|
91,262
|
|
|
|
$
|
133,691
|
|
9
Item
9.01
Financial Statements and
Exhibits
.
|
(b) Pro Forma Financial Statements
|
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
The
following unaudited pro forma condensed consolidated financial information is derived from
the historical financials of Abraxas Petroleum Corporation (“Abraxas
Petroleum”) and subsidiaries, and gives effect to the acquisition of oil and gas
properties by Abraxas Operating, LLC, a wholly-owned subsidiary of Abraxas Energy Partners,
L.P (the “Partnership”) from St. Mary Land & Exploration Company
(“St. Mary”) described in the Form 8-K filed February 6, 2008 Abraxas Petroleum
beneficially owns 47.2% of the partnership interests of the Partnership and controls the
general partner.
The
Unaudited Pro Forma Condensed Consolidated Balance Sheet as of December 31, 2007 is
presented as if the acquisition had occurred on December 31, 2007. The Unaudited Pro Forma
Consolidated Statement of Operations for the year ended December 31, 2007 are presented as
if the acquisition had occurred at the beginning of the period presented.
The
unaudited pro forma condensed consolidated financial information should be read in
conjunction with the notes thereto, the Consolidated Financial Statements of Abraxas
Petroleum and the notes thereto and the statements of revenues and direct operating
expenses of the Acquired Properties of St. Mary Land & Exploration and the notes
thereto.
In a
separate transaction, Abraxas Petroleum acquired certain oil and gas properties from St.
Mary. These properties were not material to the consolidated operations and have
accordingly not been included in these pro forma statements.
The
Unaudited Pro Forma Consolidated Financial Information is not indicative of our financial
position or the results of our operations that might have actually occurred if the St. Mary
acquisition had occurred at the dates presented or of our future financial position or
results of operations. In addition the results may vary significantly from the results
reflected in such statements due to normal oil and gas production declines, reductions in
prices paid for oil and gas, future acquisitions and other factors.
10
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2007
(in
thousands)
|
|
Historical
|
|
Pro Forma
adjustments
|
|
|
|
Pro
Forma
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
18,936
|
|
$
|
(1,101
|
)
|
(
|
a)
|
$
|
17,835
|
|
Accounts receivable
|
|
|
6,128
|
|
|
—
|
|
|
|
|
6,128
|
|
Other current assets
|
|
|
3,035
|
|
|
—
|
|
|
|
|
3,035
|
|
Total current assets
|
|
|
28,099
|
|
|
(1,101
|
)
|
|
|
|
26,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and gas properties – full cost method of
accounting:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved
|
|
|
265,090
|
|
|
124,433
|
|
(
|
b)
|
|
389,523
|
|
Unproved – not subject to amortization
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
Other property and equipment
|
|
|
3,633
|
|
|
—
|
|
|
|
|
3,633
|
|
Total
|
|
|
268,723
|
|
|
124,433
|
|
|
|
|
393,156
|
|
Less accumulated depreciation, depletion and
amortization
|
|
|
151,696
|
|
|
—
|
|
|
|
|
151,696
|
|
Total property and equipment
|
|
|
117,027
|
|
|
124,433
|
|
|
|
|
241,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred financing fees (net)
|
|
|
856
|
|
|
1,500
|
|
(
|
c)
|
|
2,356
|
|
Other assets
|
|
|
1,137
|
|
|
—
|
|
|
|
|
1,137
|
|
Total assets
|
|
$
|
147,119
|
|
$
|
124,832
|
|
|
|
$
|
271,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
11,356
|
|
$
|
—
|
|
|
|
$
|
11,356
|
|
Accrued interest
|
|
|
241
|
|
|
—
|
|
|
|
|
241
|
|
Other current assets
|
|
|
5,154
|
|
|
—
|
|
|
|
|
5,154
|
|
Total current liabilities
|
|
|
16,751
|
|
|
—
|
|
|
|
|
16,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
45,900
|
|
|
117,200
|
|
(
|
d)
|
|
163,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
5,124
|
|
|
7,632
|
|
(
|
e)
|
|
12,756
|
|
Total liabilities
|
|
|
67,775
|
|
|
124,832
|
|
|
|
|
192,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest
|
|
|
23,497
|
|
|
—
|
|
|
|
|
23,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
1,000
|
|
|
—
|
|
|
|
|
1,000
|
|
Additional paid-in capital
|
|
|
185,646
|
|
|
—
|
|
|
|
|
185,646
|
|
Accumulated deficit
|
|
|
(130,791
|
)
|
|
—
|
|
|
|
|
(130,791
|
)
|
Accumulated other comprehensive income
|
|
|
502
|
|
|
—
|
|
|
|
|
502
|
|
Total stockholders’ equity
|
|
|
55,847
|
|
|
—
|
|
|
|
|
55,847
|
|
Total liabilities and stockholders’ equity
|
|
$
|
147,119
|
|
$
|
124,832
|
|
|
|
$
|
271,951
|
|
See notes
to unaudited pro forma condensed consolidated financial statements
11
ABRAXAS PETROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS
(in
thousands except per share data)
|
|
Year Ended December 31, 2007
|
|
|
|
Historical
|
|
St. Mary
Acquisition
|
|
|
|
Pro Forma
Adjustments
|
|
|
|
Pro
Forma
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and gas production revenue
|
|
$
|
46,906
|
|
$
|
39,334
|
|
(
|
a)
|
$
|
—
|
|
|
|
$
|
86,240
|
|
Rig revenues
|
|
|
1,396
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1,396
|
|
Realized hedge income (loss)
|
|
|
1,925
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1,925
|
|
Unrealized hedge income (loss)
|
|
|
(6,288
|
)
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(6,288
|
)
|
Other
|
|
|
7
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
7
|
|
|
|
|
43,946
|
|
|
39,334
|
|
|
|
|
|
|
|
|
|
83,280
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating and production taxes
|
|
|
11,254
|
|
|
15,549
|
|
(
|
a)
|
|
—
|
|
|
|
|
26,803
|
|
Depreciation, depletion and amortization
|
|
|
14,292
|
|
|
|
|
|
|
|
10,657
|
|
(
|
b)
|
|
24,949
|
|
Rig operations
|
|
|
801
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
801
|
|
General and administrative
|
|
|
6,438
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
6,438
|
|
|
|
|
32,785
|
|
|
15,549
|
|
|
|
|
10,657
|
|
|
|
|
58,991
|
|
Operating income
|
|
|
11,161
|
|
|
23,785
|
|
|
|
|
(10,657
|
)
|
|
|
|
24,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
(408
|
)
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(408
|
)
|
Amortization of deferred financing fees
|
|
|
671
|
|
|
—
|
|
|
|
|
788
|
|
(
|
c)
|
|
1,459
|
|
Interest expense
|
|
|
8,392
|
|
|
—
|
|
|
|
|
8,187
|
|
(
|
d)
|
|
16,579
|
|
Loss on debt extinguishment
|
|
|
6,455
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
6,455
|
|
Gain on sale of assets
|
|
|
(59,439
|
)
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(59,439
|
)
|
Other
|
|
|
347
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
347
|
|
|
|
|
(43,982
|
)
|
|
—
|
|
|
|
|
8,975
|
|
|
|
|
(35,007
|
)
|
Income from operations before income tax and minority
interest
|
|
|
55,143
|
|
|
23,785
|
|
|
|
|
(19,632
|
)
|
|
|
|
59,296
|
|
Income tax
|
|
|
(283
|
)
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(283
|
)
|
Income from operations before minority interest
|
|
|
54,860
|
|
|
23,785
|
|
|
|
|
(19,632
|
)
|
|
|
|
59,013
|
|
Minority interest in (income) loss of partnership
|
|
|
1,842
|
|
|
—
|
|
|
|
|
(2,192
|
)
|
(
|
e)
|
|
(350
|
)
|
Net income
|
|
$
|
56,702
|
|
$
|
23,785
|
|
|
|
$
|
(21,824
|
)
|
|
|
$
|
58,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share – basic
|
|
$
|
1.22
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.27
|
|
Net income per common share - diluted
|
|
$
|
1.19
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares – basic
|
|
|
46,337
|
|
|
|
|
|
|
|
|
|
|
|
|
46,337
|
|
Weighted average shares - diluted
|
|
|
47,593
|
|
|
|
|
|
|
|
|
|
|
|
|
47,593
|
|
See notes
to unaudited pro forma condensed consolidated financial statements
13
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1. The Unaudited Proforma Condensed Consolidated Balance Sheet as of
December 31, 2007, reflects the Partnership’s acquisition of the St. Mary properties
as if it had occurred as of December 31, 2007.
|
a.
|
Cash and cash equivalents related to the acquisition of oil
and gas properties from St. Mary.
|
|
b.
|
Fair value of oil and gas properties acquired.
|
|
c.
|
Direct and incremental deferred financing fees associated
with the Partnership’s amended credit facility and subordinated
facility.
|
|
d.
|
Borrowings under the Partnership’s amended credit
facility and subordinated facility as follows, (in thousands).
|
Amended Credit Facility
|
|
$
|
67,200
|
|
Subordinated Facility
|
|
|
50,000
|
|
Total
|
|
$
|
117,200
|
|
|
e.
|
Liability for future site restoration related to acquired
properties.
|
Note 2. The Unaudited Proforma Condensed Consolidated Statement of
Operations for the year ended December 31, 2007 reflects the acquisition of the St. Mary
properties as if it had occurred at the beginning of the period.
|
a.
|
Record oil and gas production sales, lease operating
expenses and ad valorem and production taxes directly related to the oil
and gas properties acquired.
|
|
b.
|
Record depletion expense related to the oil and gas
properties acquired.
|
|
c.
|
Amortize deferred financing fees associated with the
Partnership’s amended credit facility and subordinated facility. As
required by SFAS 143,t the fair value of a liability for an asset's
retirement obligation be recorded in the period in which it is incurred and
the corresponding cost capitalized by increasing the carrying amount of the
related long-lived asset. The liability is accreted to its then present
value each period, and the capitalized cost is depreciated over the
estimated useful life of the related asset.
|
|
d.
|
Adjust interest expense for Partnerships’ borrowings
under its amended credit facility and subordinated facility and non cash
interest relating to the accretion of future site restoration liability as
follows (in thousands):
|
Interest expense related to Partnership
borrowings
|
|
$
|
7,587
|
|
Interest expense related to future site restoration
liability
|
|
|
600
|
|
Total
|
|
$
|
8,187
|
|
The following table illustrates interest expense on the above borrowings.
Interest rates are not fixed, accordingly, actual expense incurred may vary from these
amounts.
|
|
Rate
|
|
Expense
|
|
Amended Credit Facility
|
|
.051
|
|
$
|
3,467
|
|
Subordinated Facility
|
|
.082
|
|
|
4,120
|
|
|
|
|
|
$
|
7,587
|
|
|
e.
|
Adjust for minority owners’ interest in net
earnings.
|
14
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
ABRAXAS PETROLEUM CORPORATION
By:
/s/ Chris E.
Williford
Chris E. Williford
Executive Vice President, Chief Financial
Officer and Treasurer
Dated:
April 16, 2008
15
Abraxas (AMEX:ABP)
Historical Stock Chart
From May 2024 to Jun 2024
Abraxas (AMEX:ABP)
Historical Stock Chart
From Jun 2023 to Jun 2024