Exhibit 99.1



                                  NEWS RELEASE

             Abraxas Announces U.S. Reserves with Operational Update

SAN  ANTONIO  (March  4,  2005)  -  Abraxas  Petroleum  Corporation  ("Abraxas")
(AMEX:ABP)  today announced U.S. proved reserves of 93.7 Bcfe as of December 31,
2004 with an estimated future net revenue, discounted at 10% ("PV10"), of $149.0
million.   In  addition,   Abraxas  has  internally   engineered  U.S.  unrisked
incremental  reserves of 89.9 Bcfe,  representing  102  projects  with a PV10 of
$126.7 million.

Comparing  December 31, 2004 to December 31, 2003,  proved  reserves in the U.S.
declined   approximately   6%  amid  capital   expenditure   restrictions.   The
restrictions  were  eliminated  in October of 2004 when Abraxas  refinanced  its
debt. Subsequent to the refinancing, Abraxas accelerated its capital development
program and plans to spend $22 million on 16 development  projects  during 2005.
In Texas,  we  currently  have 2 wells  drilling  and an  additional  4 wells in
different stages of completion.  Abraxas owns a 100% working interest in each of
the 6 wells in progress.

"The year-end reserves  essentially  reflect a roll-off of 2004 production as we
were  capital  restricted  for the first 10 months of 2004.  The  capital we did
spend in 2004 was  predominately  in Canada in preparation for the IPO while the
capital spent in the U.S. basically converted properties from the undeveloped to
the developed  category.  We look forward to the  opportunity to add reserves in
2005 with our  development  program in Texas and  Wyoming  currently  underway,"
commented Bob Watson, Abraxas' President and CEO.

Abraxas' proved reserves are evaluated by the independent  reservoir engineering
firm of DeGolyer and MacNaughton.

Abraxas Petroleum  Corporation is a San Antonio-based  crude oil and natural gas
exploitation and production company with operations 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.

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