Abraxas Announces Operational Update.

SAN ANTONIO -- Abraxas Petroleum Corporation (AMEX:ABP) today announced an operational update on six wells in Wyoming and Texas.

In the Oates SW Field of West Texas, the initial Wolfcamp re-entry well was completed and placed on-line. In addition, the initial Woodford shale test was re-entered, perforated and fracture stimulated. Due to the competitive nature of these resource gas plays, specific production rates and completion techniques are being kept confidential.

In Wyoming, all four wells that were recently drilled to a total depth of approximately 9,200 feet have been placed on pump and are undergoing production testing, with initial recovery of frac fluid. The four wells were completed in a total of seven formations. However, in order to comply with the Wyoming commingling statutes, each formation must be tested separately. The Company plans to complete five additional formations after testing the initial seven formations, for a total of twelve formations from four wells. Once all of the formations are completed and tested individually, they will be commingled and an ultimate sustained rate of production can be obtained.

Abraxas owns a 100% working interest in all six of the aforementioned wells.

"We are very pleased with the progress of the completions in Texas and Wyoming. Production from these wells will contribute to a continually growing production profile as we exit 2005 and enter 2006. In early 2006, we will commence a Devonian re-entry in the Oates SW Field of West Texas with our own workover rig, as the kick off to our $40 million capital expenditure budget for 2006. Recent industry activity in certain West Texas resource gas plays has brought a lot of attention to the area creating a very competitive environment. This competitive environment has required us to keep specific well information very close to our vest, which will enable us to trade the information with our competitors in exchange for their information," commented Bob Watson, President and CEO.

Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploitation and production company with operations in Texas and Wyoming.

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 natural gas and crude oil. In addition, Abraxas' future natural gas and crude oil 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.