Abraxas Acquires New Cache Petroleums Ltd.

Abraxas Petroleum Corporation has announced its acquisition of New Cache Petroleums Ltd. through its wholly owned subsidiary, Canadian Abraxas Petroleum Limited (Canaxs). Abraxas acquired more than 90% of the issued and outstanding common shares and associated rights of New Cache and plans to acquire the remaining 1.2% of the issued and outstanding common shares and associated rights of New Cache, to convert the company into a wholly owned subsidiary of Canaxas. Some C$92 million (US$60 million is to be paid in cash or C$6.50 per share, with an assumption of approximately C$37 million (US$24 million) of debt.

Abraxas intends to integrate the New Cache operations into the existing operations of Canaxas and Grey Wolf Exploration, with Grey Wolf eventually acquiring as much as 50% of the New Cache assets.

Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploration and production company that also processes natural gas. It operates primarily along the Texas Gulf Coast, in the Permian Basin of western Texas, western Canada, and southwestern Wyoming.