NEWS RELEASE

                      ABRAXAS CONSENT SOLICITATION EXPIRES

SAN ANTONIO, TX (July 7, 2004) - Abraxas Petroleum Corporation  (AMEX:ABP) today
announced  that the Consent  Solicitation  relating to its 11 1/2% Secured Notes
due May of 2007,  Series A and Series B  ("Notes"),  has  expired  under its own
terms.  The Company was  unsuccessful in acquiring the majority consent required
for the completion of the Consent Solicitation.

Abraxas Petroleum  Corporation is a San Antonio-based  crude oil and natural gas
exploitation and production company that also processes natural gas. The Company
operates in Texas, Wyoming and western Canada.


FOR MORE INFORMATION CONTACT:
Janice Herndon/Manager Corp. Communications
Telephone 210.490.4788
jherndon@abraxaspetroleum.com
www.abraxaspetroleum.com