The information presented herein may contain predictions, estimates and other forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that its expectations are based on
reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially
from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, the need to develop
and replace reserves, environmental risks, competition, government regulation and the ability of the Company to meet its stated business goals.
A.G. Edwards
E&P Conference
July 18, 2007
Exhibit 99.1
1
Abraxas Petroleum Corporation
AMEX:ABP
Market capitalization ~ $200 million
Enterprise value ~ $200 million
= $0 debt & $8 million in cash
Options: CBOE and PCX
Fully diluted shares outstanding ~ 50 million
Ownership ~ 15% insider
~ 22% institutional
Average trading volume (3 mos) ~ 290,000 shares per day
AMEX: ABP
2
Company Overview
2
Closed: May 25, 2007
MASTER LIMITED PARTNERSHIP
Contributed 65 Bcfe of proved reserves
ABP Ownership = 47% interest
AMEX: ABP
3
Recent Transactions
$ 157.5
TOTAL USES:
$ 157.5
TOTAL SOURCES:
7.0
Excess cash (ABP):
Fees & expenses:
Repay credit facility:
Redeem existing notes: (1)
USES:
10.3
0.9
$ 139.3
(millions)
35.0
22.5
$ 100.0
(millions)
SOURCES:
Socié té G énérale credit facility:
5.9 million shares of ABP stock:
53% MLP to institutional investors:
(1) Includes call premium and interest
3
AMEX: ABP
4
Transaction Results
Results:
Debt-free Abraxas Corp.
(interest payments = $16 million/yr)
Retained control of the properties
Significant cash-flow stream to Abraxas Corp.
Accelerate drilling activities
4
Distribution of Assets
Assets Contributed to MLP
Highlights (1)
Proved Reserves (Bcfe): 65.4
-Percent Proved Developed: 58%
-Percent Natural Gas: 91%
Q1 07 Net Production (Mcfepd): 16,900
Gross Acres: 16,400
Net Acres: 13,500
Delaware Basin
Cherry Canyon
EOG Montoya
Other Delaware Basin ~85%
Oates SW – 4 PDP / 5 PUD
Gulf Coast Basin
Edwards
Portilla
(1) As of 12/31/06, unless noted otherwise
AMEX: ABP
5
Delaware Basin
Other Delaware Basin ~15%
Oates SW – 4 wells plus
Woodford/Barnett
“Resource Play”
Eastern Shelf
IRA / Martin
Highlights (1)
Proved Reserves (Bcfe): 33.4
-Percent Proved Developed: 29%
-Percent Natural Gas: 67%
Q1 07 Net Production (Mcfepd): 2,600
Gross Acres: 88,200
Net Acres: 76,200
Powder River Basin
Mowry Shale
“Resource Play”
Assets Retained at ABP
Gulf Coast Basin
Edwards – 2 PUD
Wilcox
5
Quality assets
High ownership interest (79% WI)
Operational control (99%)
Large acreage positions
Substantial upside
Natural gas (67%)
Operations in Texas and Wyoming
> 10 year inventory of projects
on existing leasehold
High impact projects
AMEX: ABP
6
Retained Asset Base
Jun-07 reflects the transactions announced on May 25, 2007
and includes 47% of the proved reserves contributed to the MLP
Acquisitions:
< $0.65 / Mcfe
Dec 31,
6
AMEX: ABP
7
ABP Valuation
$ 99
$ 99
$ 16.66
5.936
Abraxas MLP units (MM)
$ 241
$ 212 – $ 271
Total ABP Equity Value:
Price Per Unit
Price Per Acre
Undeveloped Acreage:
$ 241
$ 212 – $ 271
Total Enterprise Value:
$ 0
$ 0
Less: Debt
48.76
Shares Outstanding
$ 19
$ 19
Cash and other assets (1)
In-Ground Value
46,500
15,000
2,500
33.4
Value Per Share
$ 300 - $ 700
$ 800 - $ 1,200
$ 400 - $ 700
$ 2.00 - $3.00
Multiple Range
$ 4.94
$ 4.34 - $ 5.56
$ 23
$ 15
$ 1
$ 14 – $ 33
$ 12 – $ 18
$ 1 – $ 2
- Mowry Shale
- Woodford Shale
- Wilcox Exploratory
$ 84
$ 67 - $ 100
Proved Reserves (Bcfe):
Valuation
Midpoint ($MM)
Valuation Range
($MM)
ABP Assets
(1)
Cash, GWE common stock
workover rigs, vehicles, and
surface acreage / yards
7
AMEX: ABP
8
Upside Potential
$ 96
$ 64
$ 32
64
59
Probable & Possible (3)
$ 38
$ 25
$ 13
Upside Potential
Value per Share
$ 1,884
$ 1,256
$ 628
1,256
559
Total
$ 37
$ 600
$ 555
$1.00 per Mcfe
($MM)
$ 19
$ 300
$ 277
$0.50 per Mcfe
($MM)
$1.50 per Mcfe
($MM)
Potential
Bcfe (2)
Number of potential /
identified projects (1)
15
300
185
Exploratory Wilcox Plays
Mowry Shale Oil Play
Woodford Shale Play
$ 56
37
$ 900
600
$ 832
555
(1) Woodford Shale on 80 acre spacing and Mowry Shale on 160 acre spacing
(2) Capital required $1.8 billion – volumes and resultant values are mid-point of range
(3) Net of reserves in specific plays
8
Drill Bit Growth
targeting Conventional Reservoirs
& emerging Resource Plays
Increase Shareholder Value
through……
AMEX: ABP
9
Operational Goals
Reserve Ratio Improvement
by converting
proved undeveloped and un-booked reserves
to the proved developed category
9
SOUTH TEXAS
Gulf Coast Basin
Bee, DeWitt, Goliad,
Karnes & Live Oak Counties
WEST TEXAS
Delaware Basin
Pecos & Ward
Counties
••••
Eastern Shelf
Coke, Dawson, Howard,
Martin, Midland, Mitchell
& Scurry Counties
WYOMING
Powder River Basin
Converse & Niobrara
Counties
AMEX: ABP
10
Abraxas Corp. Properties
10
Proved Reserves – 33.4 Bcfe (1)
(1) Pro forma as of 12/31/06
AMEX: ABP
11
Reserves / Acreage
West Texas
28%
South Texas
5%
Wyoming
67%
Net Undeveloped Acres ~ 63,500 (1)
West Texas
79%
South Texas
18%
Wyoming
3%
11
AMEX: ABP
12
Conventional Reservoirs
Developing Existing Proved Reserves
Projects for 2007 and beyond…
“the low hanging fruit”
Edwards
Wilcox
Delaware
Mississippian / Devonian
IRA
Clearfork / Strawn Reef
Oates SW
Devonian
12
Oates SW Field
Wellbores available for re-entry
Pecos Co.
~15,000 acres
AMEX: ABP
13
> 75 sq. miles of 3-D
Hudgins 11-1:
Woodford
La Escalera 5-1:
Lower Wolfcamp
Manzanita 1H:
2007 Devonian
La Escalera 2:
Atoka
ABP retained wells
ABP retained the following:
Surface rights
Mineral rights
Executive rights
All formations from MLP
wells w/o proved reserves
Hudgins 37-1H:
Devonian
Elsinore Cattle 56:
Devonian
Hudgins 34-2H:
Devonian
La Escalera 1AH:
Devonian
Wells contributed to MLP
(plus 3 Devonian PUDs &
2 Montoya PUD completions)
13
Pecos
ABP: Oates SW Field
~ 15,000 acres
(gained valuable reservoir knowledge &
producing small amount of dry gas from
the Woodford)
CHK 50% / Petro-Hunt 50%
~100,000 acres
3-D seismic swap
1 flowing gas)
Petro-Hunt
(2 permitted &
Reliance / CHK / PXD
3-D seismic & data swap
PXD
(1 drilled &
1 permitted)
AMEX: ABP
14
Woodford Shale Play
14
Delaware Basin Shale Players:
ABP, COP, CHK, CRZO, CWEI,
DVN, ECA, EOG, FST, KWK,
PPP, PXD, RRC, SWN, XTO,
Reliance and Petro-Hunt
Barnett Shale Players:
BEXP, COP, CHK, CRZO,
DNR, DVN, ECA, EOG, IFNY,
KWK, PLLL, RRC, XTO
4 (+)
?
100 – 1,000
Barnett: 500 – 1,000
Woodford: 100 – 400
9,000 – 16,000
0.7 – 3.0
1.0 – 9.0
Mississippian /
Devonian
Delaware Basin Shale
(Barnett / Woodford) (1)
10 – 26
Recovery factor (%)
2 (+)
Average well cost ($MM)
50 – 150
Gas-in-place (Bcf / 640 acres)
50 – 1,000
Thickness (feet)
0.5 – 1.9
Thermal maturity (Ro)
6,500 – 8,500
Depth (feet)
Mississippian
Geologic age
~ 4.5
Total organic content (%)
Ft. Worth Barnett
Shale (2)
AMEX: ABP
15
Gas Shale Play Comparison
(1) Natexis Bleichroeder Inc., CHK and internal estimates
(2) Pickering Energy Partners
15
AMEX: ABP
16
Mowry Shale Oil Play
ABP: Brooks Draw
10 wells
(5 horizontal / 5 vertical)
3 vertical wells producing from
Mowry
(commingled with other zones)
2007 Plans
Permitting several wells
(full-scale technical evaluation of
our acreage)
Converse & Niobrara Counties, Wyoming
23 sq. miles proprietary 3-D seismic survey
Brooks Draw
~50,000 acres (1)
(1) Gross acres (>92% MI), >12,000 HBP
AEZ/BEXP: Krejci
Horizontal Mowry Shale
~ 15 to the SE of Brooks Draw
2007 Plans
Continuous
drilling program
Map of leasehold in Converse & Niobrara Counties, Wyoming
16
Mowry Shale Players:
ABP, AEZ, BEXP
Bakken Shale Players:
BBG, BEXP, COP, EOG,
MRO, SM, WLL and several
privately-held companies
Dolomitic siltstone
Reservoir Rock
Siliceous silty shale
640
Well spacing (acres)
160
2.0 – 3.0
150 - 500
110’ - 175’
7,500’ – 10,000’
Lower Cretaceous
Mowry Shale (1)
3.0 – 4.5
Average well cost ($MM)
200 - 500
Potential EUR (MBOE) per well
10’ - 50’
Thickness (feet)
10,000’ - 11,000’
Depth (feet)
Upper Devonian /
Lower Mississippian
Geologic age
Bakken Shale (2)
AMEX: ABP
17
Oil Shale Play Comparison
(1) AEZ/BEXP, Powder River Energy Partners, R.P. Nixon paper and internal estimates
(2) EOG, BEXP, OG Journal, Landmark, F.F. Meissner paper
17
AMEX: ABP
18
Exploratory Plays
Potentially High Impact
Targeting the Wilcox Formation
Plummer & Tuleta
Prospects,
Bee County
Janssen Prospect,
Karnes County
Goebel Prospect,
Live Oak County
18
Capital Expenditure Budget $16 million
Single well impact to guidance !
Historically, $4,500 of capital expended = 1 Mcfepd
AMEX: ABP
19
Remaining 2007
19
Maintain financial flexibility and liquidity
Prioritize opportunity set
AMEX: ABP
20
Capture the Upside
Increase shareholder value
20
Niche exploration and production company
High quality assets with substantial upside
Goals:
Drill Bit Growth
Reserve Ratio Improvement
AMEX: ABP
21
Summary
CONTINUE TO INCREASE SHAREHOLDER VALUE
21
www.abraxaspetroleum.com
Manzanita 1H
Hudgins Ranch,
Delaware Basin,
West Texas
22
