Abraxas Petroleum Corporation Announces New Board Of Directors Following Exchange Offer.

Business Editors and Energy Writers

SAN ANTONIO--(BUSINESS WIRE)--Jan. 6, 2000

Abraxas Petroleum Corporation (OTCBB:AXAS) announced today the make-up of its Board of Directors following the recently announced completion of the exchange of its existing Senior Notes for a new issue of notes and shares of common stock and contingent value rights.

The new Board consists of seven members, composed of three continuing members and four new appointees. Continuing on the Board will be Robert L.G. Watson, President and C.E.O. of the Company, who will remain in his position as Chairman of the Board. Previous directors, James Phelps and Frank Burke, will also continue to serve on the Board. Mr. Burke will serve a term that expires at the Company's annual meeting in May of 2000 and Messers. Watson and Phelps will serve until the Company's annual meeting in May of 2001.

Appointed to serve terms expiring at the annual meeting of stockholders in May of 2002 were Mr. Craig S. Bartlett Jr., Mr. Ralph F. Cox, Mr. Frederick M. Pevow Jr. and Mr. Joseph A. Wagda.

Craig S. Bartlett Jr. brings over 40 years of commercial banking experience to the Company, the most recent being with National Westminster Bank USA, rising to the position of EVP, Senior Lending Officer and Chairman of the Credit Policy Committee. Mr. Bartlett continues to serve on numerous boards and is active in independent consulting roles. Mr. Bartlett attended Princeton University and has an advanced Management certificate from Pennsylvania State University.

Ralph F. Cox has over 45 years of Oil and Gas industry experience, more than 30 of which was with Arco. Mr. Cox retired from Arco in 1985 after having become Vice Chairman. Mr. Cox then joined what is now Union Pacific Resources, retiring in 1989 as President and Chief Operating Officer. Mr. Cox then joined Greenhill Petroleum Corporation as President until leaving in 1994 to pursue his consulting business. Mr. Cox has in the past and continues to serve on many boards including Arco, Fidelity Investments, and the Kansas City Federal Reserve Board. Mr. Cox earned Petroleum and Mechanical Engineering degrees from Texas A&M University with advanced studies at Emory University.

Frederick M. Pevow Jr. joins the board with almost 15 years of energy investment banking experience with Salomon Smith Barney, Dillon Read and most recently CIBC World Markets where he was Executive Director and headed the Worldwide Investment Banking practice covering the Oilfield Services and Equipment Industries. Mr. Pevow currently advises and invests in energy sector transactions through Pevow & Associates, a boutique investment and merchant banking firm. Mr. Pevow holds an undergraduate degree from the University of Texas with further studies at Rice University.

Joseph A. Wagda is a practicing attorney, who brings a varied 25- year business career to the Board, particularly business development, legal and financial expertise developed while with Price Waterhouse, Ford Motor Company, Chevron Corporation and in private practice with the law firm of Hiscock & Barclay. Mr. Wagda also brings experience in M&A, workout and turnaround situations, including advisory services to airline, insurance and power-producing companies. Mr. Wagda received an undergraduate degree from Fordham College, an MBA from Cornell University and a JD from Rutgers University. Mr. Wagda has been admitted to the bar in California, Michigan and New York.

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.