Abraxas Petroleum Corporation Announces Canadian Property Sales.

Business Editors and Energy Writers

SAN ANTONIO--(BUSINESS WIRE)--July 11, 2000

Abraxas Petroleum Corporation (OTCBB:AXAS) announced today that its wholly owned subsidiary, Canadian Abraxas Petroleum Ltd. ("Canaxas"), is expecting to close transactions related to the selling of oil and gas properties for total consideration of $8.5 Million (US) by the end of July.

Canaxas continues negotiations with potential buyers on additional properties that could result in additional cash proceeds to the Company as well as various property exchanges allowing Canaxas to increase its interest in identified key areas in which it currently has operations. The non-core, primarily non-operated properties expected to close in July, include 1.2 million barrels of oil equivalents (at year-end 1999) represented by a 63% oil component and interest in one gas processing facility. Current daily production from the properties to be sold is approximately 500 barrels of oil equivalents per day.

This rationalization of assets is part of the Company's previously announced strategy of refocusing its operations and exploitation efforts in Canada to concentrate on a limited number of core areas with high potential return.

Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploration and production company that also processes natural gas. It operates primarily along the Texas Gulf Coast, in the Permian Basin of western Texas, western Canada and southwestern Wyoming.