Abraxas Provides Operational Update

Mon Jan 7, 2013 4:00pm EST

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SAN ANTONIO--(Business Wire)--
Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to provide the following
operational update. 

Eagle Ford Shale

In McMullen County, the Cobra B 1H averaged 592 boepd (95% oil) on a restricted
choke over its first 30 days of production. The Mustang 1H was successfully
completed with a 19 stage completion in mid-December and is currently flowing to
sales at rates above the Company`s in-house type curve. The Corvette C 1H
reached TD at 15,049 feet in under 8 drilling days and is scheduled to be
completed in mid-January. Abraxas recently spudded the Gran Torino A 1H and is
currently drilling the curve at 9,600 feet. Abraxas owns a 25% working interest
in the Cobra B 1H and Corvette C 1H and an 18.75% working interest in the
Mustang 1H and Gran Torino A 1H. 

Williston Basin

Drilling continues on the Company`s Lillibridge East PAD with intermediate
casing set on the 1H and 2H. The curve is currently being built on the
Lillibridge 3H after which the rig will move to the 4H. Abraxas owns an
approximately 37% working interest in the Lillibridge PAD. The expected
mid-December completion of the Raven 2H has been delayed by the discovery of a
third party downhole equipment failure, which required remediation work.
Remediation work is expected to be completed in the near future with a revised
stimulation date set for late January. The Ravin 3H recently experienced similar
mechanical completion issues to the Ravin 2H. Remediation work will begin on the
Ravin 3H post the completion of the Ravin 2H with an expected stimulation date
in mid-February. Abraxas owns a 49% working interest in both the Ravin 2H and
3H. 

Bob Watson, President and CEO of Abraxas, commented, "Although we are
disappointed with the completion delays in the Bakken, operations continue to
perform exceptionally well at Abraxas with well results and efficiency gains in
our Bakken and Eagle Ford drilling programs consistently above expectations. We
now enter 2013 anticipating a strong and immediate production boost from our
forthcoming Bakken and Eagle Ford completions." 

Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas
exploration and production company with operations across the Rocky Mountain,
Mid-Continent, Permian Basin and onshore Gulf Coast regions of the United States
and in the province of Alberta, Canada. 

Safe Harbor for forward-looking statements: Statements in this release looking
forward in time involve known and unknown risks and uncertainties, which may
cause Abraxas` actual results in future periods to be materially different from
any future performance suggested in this release. Such factors may include, but
may not be necessarily limited to, changes in the prices received by Abraxas for
crude oil and natural gas. In addition, Abraxas` future crude oil and natural
gas production is highly dependent upon Abraxas` level of success in acquiring
or finding additional reserves. Further, Abraxas operates in an industry sector
where the value of securities is highly volatile and may be influenced by
economic and other factors beyond Abraxas` control. In the context of
forward-looking information provided for in this release, reference is made to
the discussion of risk factors detailed in Abraxas` filings with the Securities
and Exchange Commission during the past 12 months.

Abraxas Petroleum Corporation
Geoffrey King, 210-490-4788
Vice President - Chief Financial Officer
gking@abraxaspetroleum.com
www.abraxaspetroleum.com



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