Partners dissolve Blue Eagle Energy JV

Dissolved: Abraxas and Rock Oil agree to break up Blue Eagle Energy

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Luke Johnson

 08 August 2012 18:00 GMT

Abraxas Petroleum said it has agreed to dissolve its Blue Eagle Energy joint venture in the Eagle Ford Shale due to low oil prices that led to "unacceptable" bids for a proposed sale of the venture's assets.

“This transaction is the result of a sale process of Blue Eagle that commenced earlier this year," Abraxas chief executive Bob Watson said in a statement. "Initial offers for these assets were at acceptable levels but as negotiations went on, the price of oil fell precipitously, and bids were reduced to where they became unacceptable for these quality assets."

Abraxas signed a $100 million deal in 2010 with privately held Blue Stone Oil & Gas to develop the Eagle Ford. Denver-based Blue Stone later changed its name to Rock Oil…

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