UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
May 1, 2002
Abraxas Petroleum Corporation
(Exact name of registrant as specified in its charter)
Nevada
(State of other jurisdiction of incorporation)
0-19118 74-2584033
(Commission File Number) (I.R.S. Employer Identification Number)
500 N. Loop 1604 East, Suite 100
San Antonio, Texas 78232
(Address of principal executive offices)
Registrant's telephone number, including area code:
210-490-4788
Item 5.OTHER EVENTS
See attached Press Release
The following exhibits are filed as part of this report:
NUMBER DOCUMENT
99.1 Press release dated May 1, 2002
SIGNATURES
Pursuant to the requirement 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:___________________________________
Chris Williford
Executive Vice President, Chief Financial
Officer and Treasurer
Dated: May 1, 2002
Exhibit 99.1
NEWS RELEASE
ABRAXAS TO DEFER INTEREST PAYMENT
SAN ANTONIO, TX (May 1, 2002) - Abraxas Petroleum Corporation (the "Company")
(AMEX:ABP) today announced that it will defer payment of $11.0 million in
interest due today on its $191 million principal amount of 11.5% Senior Secured
Notes due 2004 (the "Notes"). Under the terms of the Notes, non-payment of
interest is an event of default only if the payment is not made within 30 days
after the due date (the "grace period").
During the grace period, the Company expects to combine current cash on hand
with expected cash flows to make the interest payment. The Company does not
expect that the deferral of the interest payment will have an impact on its
ongoing operational activities.
Abraxas CEO Robert Watson commented, "While we are disappointed at having to
utilize our grace period to make our interest payment, we are confident that
this is a short-term timing issue caused by events beyond our control and not a
long-term problem. Although we have not had a conventional bank line for the
past several years to assist in managing our liquidity needs, we have been
successful in managing cash flow, fixed charges, capital expenditures, asset
sales and other financings to meet all of our obligations timely, while
developing our significant asset base. Nothing operationally has changed at
Abraxas. The expected completion of our previously announced non-core asset
sales and the recovery in commodity prices will allow us to continue to develop
our sizable inventory of projects and to improve our balance sheet to maximize
shareholder value."
Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas
exploitation and production company that also processes natural gas. The Company
operates in Texas, Wyoming and western Canada. Please visit
www.abraxaspetroleum.com for the most current and updated information. The web
site is updated daily to comply with the SEC Regulation FD (Fair Disclosure).
Safe Harbor for forward-looking statement: Statements in this release looking
forward in time involve known and unknown risks and uncertainties, which may
cause the Company's actual results in future periods to be materially different
from any future performance suggested in this release. Such factors may include,
but may not be necessarily limited to, changes in the prices received by the
Company for crude oil and natural gas. In addition, the Company's future crude
oil and natural gas production is highly dependent upon the Company's level of
success in acquiring or finding additional reserves. Further, the Company
operates in an industry sector where the value of securities is highly volatile
and may be influenced by economic and other factors beyond the Company's
control. In the context of forward-looking information provided for in this
release, reference is made to the discussion of risk factors detailed in the
Company's filing with the Securities and Exchange Commission during the past 12
months.
FOR MORE INFORMATION CONTACT:
Janice Herndon/Manager Corp. Communications
Telephone 210.490.4788
jherndon@abraxaspetroleum.com
www.abraxaspetroleum.com