Abraxas Updates Conference Presentation Information; Provides 4Q12 and 2013 Guidance; Provides Additional Operational and A&D

  Abraxas Updates Conference Presentation Information; Provides 4Q12 and 2013
  Guidance; Provides Additional Operational and A&D Disclosures

Business Wire

SAN ANTONIO -- November 30, 2012

Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to update its upcoming
presentation information, provide 4Q12 and 2013 guidance as well as provide
additional operational and A&D disclosures.

Upcoming Presentations

Geoff King, VP and CFO of Abraxas, will be presenting at the Dahlman Rose
Ultimate Oil Service and E&P conference in New York on Monday, December 3,
2012 at 7:50AM EST. A webcast of this presentation is accessible on the
Company’s website or by using the following link
(http://wsw.com/webcast/dahlman17/axas/).

Geoff King, VP and CFO of Abraxas, will also be presenting at the CapitalOne
Southcoast Energy Conference in New Orleans on Thursday, December 6, 2012 at
10AM EST.

4Q12 Guidance

Abraxas expects 4Q12 production to average between 4,300-4,500 BOEPD. The
variance in guidance is due to the timing of completion and productivity of
recent Bakken and Eagle Ford wells. The Company’s sale of its Nordheim
properties, expected to close in mid-December, is reflected in this guidance.
Abraxas anticipates its exit rate to be substantially higher than fourth
quarter average volumes, based on the expected completion of four wells in
Abraxas’ continuous drilling program in the Bakken and Eagle Ford plays.

2013 Guidance

Abraxas expects 2013 production to average between 4,900-5,200 BOEPD, which
equates to approximately 21-28% growth over 2012. The Company is also actively
marketing numerous assets which it deems non-core, assets with a low working
interest or assets with little associated production that are not reflected in
this guidance.

Abraxas’ board of directors recently approved the Company’s CAPEX budget for
2013 of $70mm. Abraxas’ internal model indicates at the current strip this
CAPEX is fully supportable by current projected cash flow from operations
including cash flow from Raven Drilling (which is treated as a credit to
Abraxas’ full cost pool for accounting purposes and not reported in operating
income or operating cash flow) and minimal use of the Company’s credit
facility. Abraxas plans to keep one drilling rig continuously operating in its
Bakken and Eagle Ford plays throughout 2013. Moreover, 100% of 2013 CAPEX is
focused on the Company’s core basins in the Bakken, Eagle Ford and Permian as
follows:

                  Net Wells              
                    Drilled   Completed     Net CAPEX
Bakken Operated     5.3         3.8           $37.7
Bakken Non-Op       1.3         1.3           $10.0
Eagle Ford          2.6         2.6           $21.6
Permian             1.9         1.9           $0.7
                                              $70.0
                                              

Additional Operational and A&D Disclosure

In numerous presentations over the past three months the Company has
highlighted three core principles to its business plan: refocus on its core
basins, delever via asset sales of low working interest, low cash flow and low
productivity assets and grow its production base off its high working interest
core positions. The execution of this plan is exemplified by the Company’s two
recent sales of non-core assets for combined proceeds of approximately $22mm
and operational update announced on November 27, 2012. The Company remains
actively engaged in additional sale processes on numerous non-core assets and
will update the market on the progress of these sales when appropriate so as
to not negatively affect the sale process.

Abraxas is also pleased to announce that the Company’s previously announced
sale of its Alberta Basin properties in Montana closed yesterday.

Bob Watson, President and CEO of Abraxas, commented, “Our business plan, CAPEX
schedule and recent asset sales exemplify the strides we are making in
executing on our stated plan of refocusing the portfolio on our core basins,
delevering the balance sheet and growing the production base off high working
interest wells in our core basins. Furthermore, our divestiture activity and
schedule remains quite active and ongoing. We look forward to updating the
market regularly as we continue to execute on our stated business plan.”

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.

Contact:

Abraxas Petroleum Corporation
Geoffrey King, 210-490-4788
Vice President – Chief Financial Officer
gking@abraxaspetroleum.com
www.abraxaspetroleum.com