Acquisitions & Divestitures

Abraxas Petroleum Corp., San Antonio, (Nasdaq: AXAS) and Denver-based Blue Stone Oil & Gas LLC have entered a joint-venture agreement to develop 8,333 net Eagle Ford shale acres in South Texas.

Abraxas will contribute the acreage to Blue Stone and will receive a $25-million equity interest in the joint venture. Blue Stone will initially contribute $25 million in cash for a $25-million equity interest in the joint venture.

The joint venture’s subject area will encompass 12 counties across the Eagle Ford play for expected future acreage acquisitions. Abraxas will operate ...