Filed by Abraxas Petroleum Corporation
                                                  (Commission File No. 0-19118)
                         Pursuant to Rule 425 Under the Securities Act of 1933,
                                                                    as amended,
                                       And Deemed Filed Pursuant to Rule 14a-12
                                     Under the Securities Exchange Act of 1934,
                                                                    as amended.
                                   Subject Company:  Grey Wolf Exploration Inc.
                                                       (no Commission File No.)


                                  NEWS RELEASE

            ABRAXAS INTENDS TO MAKE TENDER OFFER TO ACQUIRE REMAINING
                        GREY WOLF EXPLORATION INC. SHARES

SAN ANTONIO, TX (April 12, 2001) - Abraxas Petroleum Corporation (AMEX:ABP)
today announced that it intends to commence an exchange tender offer to acquire
any or all of the outstanding shares of Grey Wolf Exploration Inc. (TSE:GWX) not
currently owned by Abraxas in exchange for shares of Abraxas common stock.
Abraxas currently owns approximately 49% of Grey Wolf Exploration's outstanding
common stock.

Abraxas intends to offer 0.6 of a share of its common stock for each share of
Grey Wolf Exploration common stock. Further information about the exchange
tender offer will be set forth in the take-over bid circular to be issued to the
Grey Wolf Exploration stockholders and Abraxas' registration statement and other
offering materials to be filed with the Securities and Exchange Commission at a
later date.

Abraxas has decided to make its offer directly to the Grey Wolf Exploration
stockholders as a result of the expiration of a prior offer made by Abraxas to
the Independent Committee of the Board of Directors of Grey Wolf Exploration.

Robert L. G. Watson, Chairman and Chief Executive Officer of Abraxas, stated,
"Bringing Grey Wolf Exploration fully into Abraxas will further increase
operating efficiencies and avoid duplication of public filing expenses. We
believe our proposed plan will enhance stockholder value for both Abraxas and
Grey Wolf Exploration."

THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN
OFFER TO EXCHANGE THE SECURITIES OF ABRAXAS FOR THE SECURITIES OF GREY WOLF
EXPLORATION. ANY SUCH OFFER OR SOLICITATION WILL BE SUBJECT TO CERTAIN CUSTOMARY
CONDITIONS INCLUDING THE RECEIPT OF A FAIRNESS OPINION AND WILL BE MADE ONLY BY
ABRAXAS' PROSPECTUS AND OTHER EXCHANGE OFFER MATERIALS, WHICH WILL BE MAILED TO
GREY WOLF EXPLORATION'S STOCKHOLDERS AT A LATER DATE. GREY WOLF EXPLORATION'S
STOCKHOLDERS ARE URGED TO READ THESE DOCUMENTS WHEN THEY BECOME AVAILABLE,
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE OFFER. THE DOCUMENTS
WILL ALSO BE AVAILABLE AT NO CHARGE FROM THE SEC'S WEB SITE, WWW.SEC.GOV, AND
FROM ABRAXAS PETROLEUM CORPORATION AT 500 NORTH LOOP 1604 EAST, SUITE 100, SAN
ANTONIO, TEXAS 78232.

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.

FOR MORE INFORMATION CONTACT:
Janice Herndon/Manager Corp. Communications
Telephone 210-490-4788
jherndon@abraxaspetroleum.com
www.abraxaspetroleum.com