Acquisitions and Divestitures

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Acquisitions and Divestitures

Acquisitions and divestitures

On July 11, 2017 the Company closed on the acquisition of mineral acreage in Ward County, Texas. The closing purchase price for this acreage was $20.9 million. This transaction did not meet the criteria of a business combination and was accordingly accounted for as a property acquisition. Proceeds from the Company's credit facility were used to fund this acquisition.

On July 14, 2017, the Company closed on the divestiture of a portion of its Powder River Basin assets for approximately $4.6 million. Proceeds from this sale were used to repay amounts outstanding under the Company's credit facility. No gain or loss was recognized on this transaction.

On August 9, 2017, the Company closed on a transaction, which the Company refers to as the Cayanosa Draw transaction, in which it acquired oil and gas properties and 973 net mineral acres (853 net mineral acres with Bone Spring and Wolfcamp rights) for $3.4 million in cash, after purchase price adjustments, 2.0 million shares of Abraxas Petroleum common stock, all of Abraxas’ ownership interest of the surface estate of the ranch located in Pecos County, Texas known as Coyanosa Draw Ranch and one-half of Abraxas’ owned mineral interests under the Coyanosa Draw Ranch. This transaction did not meet the criteria of a business combination and was accordingly accounted for as a property acquisition.