Abraxas Provides Operational Update; Provides Fourth Quarter and Year-End Production and Reserve Data; Announces Commencement of Sale Process for Non-Operated Bakken/Three Forks Assets

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SAN ANTONIO--(Business Wire)--
Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to provide the following
operational update; provide fourth quarter and year-end production and reserve
data; and announce the commencement of a sale process for its non-operated
Bakken and Three Forks assets.

Eagle Ford Shale

In McMullen County, Abraxas successfully completed the Corvette C 1H with a 20
stage fracture stimulation. This is the first WyCross well drilled on an
East-West azimuth by the Company and is currently flowing to sales at rates
above the Company`s type curve. Moreover, the well was drilled, completed and
turned to sales for approximately $6.1 million or almost $2 million below
originally projected AFE. The Gran Torino A 1H is currently being fracture
stimulated with a 19 stage completion. The Company recently drilled and cased
the Mustang 3H to a total depth of 15,007 feet with an anticipated fracture
stimulation date in March. Abraxas plans to spud its next well at WyCross, the
Mustang 2H, within the next week. Abraxas owns a 25% working interest in the
Corvette C 1H and an 18.75% working interest in the Gran Torino A 1H, Mustang 3H
and Mustang 2H.

Williston Basin

Drilling continues on the Company`s Lillibridge East PAD with intermediate
casing set on the 1H, 2H, 3H and 4H. The Company is currently preparing to drill
the lateral on the 4H after which the rig will move to drill the laterals of the
3H, 2H and 1H. Abraxas owns an approximately 34% working interest in the
Lillibridge East PAD. The Company recently completed the Ravin 3H and is
currently finishing the fracture stimulation of the Ravin 2H. Flowback is
expected to commence within the next few days from both wells. Abraxas owns a
49% working interest in both the Ravin 2H and 3H.

December 31, 2012 Reserves

Abraxas` December 31, 2012 proved oil and natural gas reserves consisted of
approximately 30.1 million barrels of equivalent ("mmboe"), a net increase of
0.84 mmboe over 2011 year end reserves of 29.3 mmboe(1). December 31, 2012
reserves consisted of approximately 58% oil, 9% NGLs and 34% natural gas versus
December 31, 2011 reserves of approximately 46% oil, 8% NGLs and 46% natural
gas. Proved oil reserves increased approximately 30% in 2012. 48% of proved
reserves as of December 31, 2012 and December 31, 2011 were classified as proved
developed. The present value, using a 10% discount rate ("PV-10"), of future net
cash flows before income taxes of Abraxas` proved reserves was approximately
$316.9 million, using 2012 average prices of $2.86/mcf of natural gas and
$95.14/bbl of oil. The lower average natural gas price of $2.86/mcf in 2012
versus $4.16/mcf in 2011 resulted in the removal of 3.1 mmboe of previously
proved undeveloped natural gas reserves, which were uneconomic to drill at 2012
average natural gas prices. The independent reserve engineering firm DeGloyer
and MacNaughton ("D&M") prepared a complete engineering analysis on 98.9% of
Abraxas` proved reserves on a BOE basis.

The following table outlines changes in Abraxas` proved reserves from December
31, 2011:

Oil Natural Gas NGL Total
(MMbbl) (Bcf) (MMbbl) (MMboe)

Proved Reserves December 31, 2011(1) 13.37 81.37 2.36 29.29
Additions 4.87 6.98 0.94 6.97
Purchases(2) 0.00 0.07 0.00 0.01
Revisions(2) 0.05 (16.77 ) (0.06 ) (2.80 )
Sales(3) (0.31 ) (6.36 ) (0.54 ) (1.91 )
Production (0.64 ) (4.11 ) (0.11 ) (1.43 )
Proved Reserves December 31, 2012 17.34 61.18 2.59 30.13

(1) Includes Abraxas` 34% working interest in Blue Eagle as of December 31, 2011
(2) Reserves associated with Abraxas` Ward county acquisition in July, 2012
included as a positive revision. Revisions also includes the removal of proved
developed not producing and proved undeveloped gas reserves
(3) Reserves associated with Abraxas` sale of its Eagle Ford Nordheim properties
in December, 2012

Fourth Quarter 2012 Production

Production in the fourth quarter averaged approximately 4,147 barrels of
equivalent per day ("boepd"). Variance from original guidance was caused by the
delayed completions of the Ravin 2H and 3H, considerable unanticipated weather
related downtime in the Williston Basin and gas plant issues in the Eagle Ford
shale that relegated the Company to flare gas. These issues remained throughout
the month of January. Production volumes for the month of February have returned
to more normalized levels of an estimated 4,400-4,600 boepd before the recent
incremental completions of the Ravin 2H, Ravin 3H and Gran Tornio A 1H as well
as the upcoming completion of the Mustang 3H. Given the recent strong base
production and incremental production anticipated from the above mentioned
Bakken and Eagle Ford completions, Abraxas reiterates its production guidance of
4,900 - 5,200 boepd for 2013.

Non-Operated Bakken/Three Forks Sale Process

Abraxas recently retained E-Spectrum Advisors (formerly Energy Spectrum
Advisors) to market its non-operated Bakken and Three Forks assets in North
Dakota and Montana. The potential divestiture consists of approximately 435
boepd and 14,502 net acres. If the Company is successful in achieving an
acceptable price for these assets, the proceeds will be used to pay down the
Company`s revolver and redeployed into its core operated Bakken and Eagle Ford
assets.

Bob Watson, President and CEO of Abraxas commented, "2012 was a momentous year
for Abraxas as we continued to transition our reserve base from natural gas to
oil, moved our Company owned rig to the Bakken and began an active Eagle Ford
drilling program. Despite a significant divestiture of Eagle Ford reserves and
the loss of the remainder of our proved undeveloped gas reserves due to pricing,
we still achieved an approximately 3% increase in total reserves and a
substantial increase in oil reserves. Our business plan for 2013 remains simple:
Focus CAPEX on our core basins primarily in the Eagle Ford and Bakken.
Rationalize our portfolio by divesting low working interest, non-operated and
non-core assets. And, most importantly, grow our production on an absolute basis
with oil volumes. Recent production and well performance accompanied by the
efficiency gains we are witnessing in our Eagle Ford program gives us confidence
that each goal is readily achievable."

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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