Exhibit 99.1
ABRAXAS PETROLEUM CORPORATION
www.abraxaspetroleum.com
500 N. Loop 1604 East, Suite 100, San Antonio, Texas 78232
Office: 210.490.4788 Exec/Acctg Fax: 210.490.8816
NEWS RELEASE
Abraxas Provides Operational Update and IPAA Small Cap Oil & Gas
Investment Symposium Presentation Details
SAN ANTONIO (Feb. 6, 2006) - Abraxas Petroleum Corporation (AMEX:ABP) today
provided an operational update and presentation details for the upcoming
Independent Petroleum Association of America's ("IPAA") Small Cap Oil & Gas
Investment Symposium to be held February 7-9, 2006 at The Westin Diplomat Resort
in Hollywood, Florida.
In the Oates SW Field of West Texas, the initial Woodford re-entry has been
placed on production. As previously announced, due to the competitive nature of
this resource gas play, specific production rates and completion techniques will
be kept confidential. The Company's workover rig is below 9,000' on a Devonian
re-entry, which the Company plans to drill horizontally.
Elsewhere in the Delaware Basin of West Texas, the Company has begun a
multi-well program of fracture stimulations and re-completions of existing
wellbores. Three wells are currently in various stages of completion, two of
which are targeting the Atoka formation and one is targeting the Wolfcamp
formation.
In Wyoming, production testing of the individual formations continues on the
four wells drilled in late 2005. The Company plans to begin the additional
completions later this month. Once all of the formations are completed and
tested individually, they will be commingled and an ultimate sustained rate of
production can be obtained.
"We are pleased to announce that we have secured two large workover rigs in West
Texas that are capable of drilling horizontally in existing wellbores and
further, have the ability to drill shallower wells from the surface. Initial
results from the Wyoming wells are quite encouraging; however, until we have all
zones on production and commingled, the ultimate production rates are unknown,"
commented Bob Watson, President and CEO.
Abraxas is scheduled to present at the IPAA Small Cap Oil & Gas Investment
Symposium on February 8, 2006 at 9:10 a.m. ET. The live audio webcast with the
corresponding PowerPoint presentation will be available at
http://www.investorcalendar.com/CEPage.asp?ID=100491 or on the Company's web
site, http://www.abraxaspetroleum.com, under the Event Calendar for this event.
The webcast including the slide presentation will be archived on the Company's
web site for 60 days.
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
natural gas and crude oil. In addition, Abraxas' future natural gas and crude
oil 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' filings 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