Abraxas Petroleum Corporation Announces Year-End 2000 Proved Reserves of 244 Bcfe With Pretax PV10 Of $1.0 Billion.

Business Editors and Energy Writers

SAN ANTONIO--(BUSINESS WIRE)--March 1, 2001

Abraxas Petroleum Corporation (AMEX:ABP) today announced year-end proved reserves of 244 Bcfe, consisting of 191 Bcf of natural gas (78%) and 8.9 million barrels of crude oil and natural gas liquids.

The pretax present value of these reserves, net of capital costs, at year-end prices and discounted at 10 percent is $1.0 billion dollars. The net proved reserve additions of 64 Bcfe were added at an all in finding cost of $1.06 per Mcfe and results in a proved reserve replacement of 247% of 2000 production of 26 Bcfe. The year-end proved reserves to 2000 production ratio is 9.5. Proved developed reserves represent 66% of the total proved reserves. United States proved reserves represent 62% of the total with the remaining 38% in Canada. Year-end reserves were impacted by dispositions during the year totaling 59 Bcfe.

In addition, the Company announced third party engineered probable reserves of 154 Bcfe, consisting of 141 Bcf of natural gas (91%) and 2.3 million barrels of crude oil and natural gas liquids. The pretax present value of these probable reserves, net of capital costs, at year-end prices and discounted at 10 percent is $547 million.

CEO and President Bob Watson commented, "The net reserve additions totaling 199 Bcfe of proven and probable reserves demonstrates the success of our exploitation efforts in 2000. We have acquired or plan to acquire over 269 square miles of 3-D seismic in our major project areas in 2001 -- the Montoya in west Texas, Wyoming, Caroline (Sundre), Pouce Coupe and Ladyfern in Canada. Our results to date along with the 3-D seismic will help us to optimize our development program in 2001, further reduce our proved F&D cost and move the probable reserves into the proven category."

Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploration and production company that also processes natural gas. It operates in Texas, Wyoming and western Canada. For additional information about the Company, please visit our Web site, www.abraxaspetroleum.com, for the most current and updated information. The Web site is updated daily in order to comply with the SEC Regulation FD (Fair Disclosure).

Safe Harbor for forward-looking statement: Statements in this release looking forward in time involve known and unknown risks and uncertainties, which may cause the Company's 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 the Company for crude oil and natural gas. In addition, the Company's future crude oil and natural gas production is highly dependent upon the Company's level of success in acquiring or finding additional reserves. Further, the Company operates in an industry sector where the value of securities is highly volatile and may be influenced by economic and other factors beyond the Company's control. In the context of forward-looking information provided for in this release, reference is made to the discussion of risk factors detailed in the Company's filing with the Securities and Exchange Commission during the past 12 months.