Exhibit 99.1
Abraxas Petroleum Corporation
500 N. Loop 1604 East, Suite 100, San Antonio, Texas 78232
P.O. Box 701007, San Antonio, Texas 78270-1007
Office: 210.490.4788 Fax: 210.490.8816
NEWS RELEASE
Abraxas Announces Production of 5.2 MMcfepd from
West Texas Horizontal Devonian Well and Provides Wyoming Update
SAN ANTONIO (Aug. 22, 2005) - Abraxas Petroleum Corporation (AMEX:ABP) today
announced the results from a Devonian horizontal well drilled in the Oates SW
Field area of West Texas and provided an update of Wyoming operations.
The La Escalera #1AH was drilled to a total depth of 16,022', including a 2,481'
lateral. The well was recently completed and has stabilized at a gross rate of
approximately 5.2 MMcfepd with flowing tubing pressure of 3,600 psig. Abraxas
owns a 100% working interest in this well, which adjoins the recently acquired
Hudgins Ranch. Abraxas' total net production is currently 30% greater than 2nd
quarter average.
In Brooks Draw, Wyoming, the Prairie Falcon #2, reached a total depth of 9,038';
production casing is being set after encountering encouraging oil shows in
multiple zones. Abraxas owns a 100% working interest in this well.
"Today's announcement of very strong results from the La Escalera #1AH well
provides ongoing confirmation that Abraxas' business strategy continues to
create shareholder value. In addition, we look forward to definitive results
from our first Wolfcamp re-entry, the La Escalera #2, and our Prairie Falcon #2,
in the near future," commented Bob Watson, Abraxas' President and CEO.
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