Abraxas Petroleum has signed an agreement to sell the majority of the company's non-operated Bakken acreage to Natural Resource Partners.

Natural Resource Partners is paying $35.3 million plus the assumption of well commitments that total $8.1 million related to 22 wells in which Abraxas has elected to participate.

The deal includes production of 502 boe/d. Abraxas will retain operated acreage in the Bakken.

Bob Watson, President and CEO of Abraxas commented, "This is obviously a transformational day for Abraxas as we significantly reduce our leverage while simultaneously shifting our focus to a core operated portfolio. Heading forward we will continue to rationalize our asset base to focus on our core operated properties primarily in the Bakken and Eagle Ford. Moreover, the removal of the non-operated Bakken assets from our portfolio will provide the company with a much more predictable production growth profile and CAPEX schedule.

Read the full press release at abraxaspetroleum.com