Exhibit
99.3
For
Information
Brent
A. Collins
303-861-8140
FOR
IMMEDIATE RELEASE
ST.
MARY CLOSES SALE OF NON-STRATEGIC ASSET PACKAGE
DENVER,
January 31, 2008 – St. Mary Land & Exploration Company (NYSE: SM)
today announces that it has closed the previously announced divestiture of
non-core properties to Abraxas Petroleum Corporation and a wholly-owned
subsidiary of Abraxas Energy Partners, L.P. The cash received, before
commission costs, at closing was $131.6 million which reflects the effect of
changes in the composition of the asset package and customary closing
adjustments to account for activity between the effective and closing
dates. The transaction has an effective date of December 1,
2007. The properties sold were located primarily in the Company’s
Rocky Mountain and Mid-Continent regions.
St.
Mary
intends to use the proceeds to pay down outstanding bank borrowings under its
revolving credit facility. The economics of the transaction were
further enhanced by utilizing a tax-advantaged exchange structure that allows
the Company to defer the gain on the sale.
INFORMATION
ABOUT FORWARD LOOKING STATEMENTS
This
release contains forward looking statements within the meaning of securities
laws. The words “will,” “intend,” and similar expressions are
intended to identify forward looking statements. Although St. Mary
believes the expectations reflected in these statements are reasonable, it
can
give no assurance that they will prove to be correct. These
statements involve known and unknown risks, including the uncertain nature
of
the expected benefits from the divestiture of oil and gas properties and other
such matters discussed in the “Risk Factors” section of St. Mary’s 2006 Annual
Report on Form 10-K/A and subsequent Quarterly Reports on Form 10-Q filed with
the SEC. Although St. Mary may from time to time voluntarily update
its prior forward looking statements, it disclaims any commitment to do so
except as required by securities laws.