The buyer is a Canadian royalty trust. The sale, made by Abraxas' Canadian Abraxas Petroleum Ltd. and Grey Wolf Exploration, is expected to close in 30 to 60 days. CIBC World Markets and BMO Nesbitt Burns were the lead financial advisers to Abraxas in the transaction.

In a press release, Abraxas CEO Bob Watson said the company would continue to look for other ways to reduce debt, including the sale of other assets, restructuring the terms of existing debt and exchanging debt for equity. Abraxas had $231 million in long-term debt at the end of the quarter ending Sept. 30. That compares with $285 million as of Dec. 31, 2001.

Abraxas, founded in 1991, is an independent energy company with oil and gas operations along the Texas Gulf Coast, north Texas and Wyoming and Canada. The company's headquarters are in the One Afton Oaks at 500 N. Loop 1604. The company's shares were trading at 83 cents today on the American Stock Exchange. The 52-week trading range is 36 cents to $1.80 per share.