EXHIBIT 99.2



                                  NEWS RELEASE


      Abraxas Announces Closing Date of the Grey Wolf Exploration Inc. IPO


SAN  ANTONIO  (Feb.  23,  2005)  -  Abraxas  Petroleum  Corporation  ("Abraxas")
(AMEX:ABP)  today announced the closing date for the Grey Wolf  Exploration Inc.
initial public offering.

Closing is expected to occur on Monday, February 28, 2005.

Abraxas Petroleum  Corporation is a San Antonio-based  crude oil and natural gas
exploitation and production company. Abraxas operates in Texas and Wyoming.

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'  filing with the Securities
and Exchange Commission during the past 12 months.

THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION FOR AN
OFFER TO BUY, NOR SHALL THERE BE ANY SALE OF THE SECURITIES  DESCRIBED HEREIN IN
ANY  JURISDICTION  IN WHICH SUCH OFFER,  SOLICITATION  OR SALE WOULD BE UNLAWFUL
PRIOR TO QUALIFICATION  UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.  THE
SECURITIES DESCRIBED HEREIN HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE
UNITED  STATES  SECURITIES  ACT OF 1933  (THE  "SECURITIES  ACT")  OR ANY  STATE
SECURITIES  LAWS AND MAY NOT BE  OFFERED  OR SOLD IN THE  UNITED  STATES  EXCEPT
PURSUANT TO A REGISTRATION OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

FOR MORE INFORMATION CONTACT:
Barbara M. Stuckey/Director of Corporate Development
Direct Telephone 210.757.9835
Main Telephone 210.490.4788
bstuckey@abraxaspetroleum.com
www.abraxaspetroleum.com