Abraxas Provides Operational and Financial Update; Provides Updated Conference Schedule

Mon Jan 28, 2013 4:00pm EST

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

Eagle Ford Shale

In McMullen County, the Mustang 1H produced an average 1,152 boepd (1,025
barrels of oil per day; 500 mcf of gas per day; 44 barrels of NGL per day) on a
restricted choke over its first 30 days of production. The well continues to
flow to sales at a rate of 999 boepd (847 barrels of oil per day; 914 mcf of gas
per day) plus NGLs on a 22/64 " choke. Completion crews are currently rigging up
on the Corvette C 1H to complete the well with a 20 stage fracture stimulation.
Abraxas recently reached TD on the Gran Torino A 1H with a fracture stimulation
date anticipated in February. Abraxas today spudded the Company`s sixth well at
WyCross, the Mustang 3H. Abraxas owns a 25% working interest in the Corvette C
1H and an 18.75% working interest in the Mustang 1H, Gran Torino A 1H and
Mustang 3H. 

Williston Basin

Drilling continues on the Company`s Lillibridge East PAD with intermediate
casing set on the 1H and 2H. Abraxas just reached TD on the curve of the
Lillibridge 3H. After setting intermediate casing on the Lillibridge 3H, the rig
will move to drill the curve of the Lillibridge 4H. Abraxas recently received
final consents on the Lillibridge PAD and now holds an approximately 34.14%
working interest across the four Lillibridge wells. The Ravin 2H and 3H are now
anticipated to be completed mid-February. Abraxas owns a 49% working interest in
both the Ravin 2H and 3H. 

Financial Update

As previously announced, the approximately $22mm in asset sale proceeds in the
fourth quarter were applied directly to paying down the Company`s revolver. At
December 31, 2012 the company had $113 million drawn on its $150 million credit
facility and approximately $575,000 in cash providing approximately $38 million
in liquidity. 

OGIS Florida

Bob Watson, President and CEO of Abraxas, will be presenting at the IPAA OGIS
conference in Fort Lauderdale Florida on February 13, 2013 at 11:25AM EST. An
updated presentation and webcast will be available at
http://www.investorcalendar.com/CEPage.asp?ID=170412 and on Abraxas` website,
www.abraxaspetroleum.com. 

Bob Watson, President and CEO of Abraxas, commented, "We are quite pleased with
the early performance of the Mustang 1H. This is our third well in the WyCross
area, and materially outperformed our previous best well the Cobra 1H. In the
Bakken, we elected to complete the Ravin 2H and 3H simultaneously in February
opposed to individual completions a month apart, which should lead to reasonable
cost savings. We look forward to updating the market post our upcoming 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

Copyright Business Wire 2013

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