(AXAS) Provides Operations Update; Announces Upcoming Presentation

Abraxas Petroleum Corporation (“Abraxas” or the “Company”) (NASDAQ:AXAS) today provided the following operations update and also announced an upcoming presentation.

Williston Basin

At Abraxas’ North Fork prospect, in McKenzie County, North Dakota, the Stenehjem 3H, producing from the Middle Bakken, averaged 1,057 boepd (848 barrels of oil per day, 1,254 mcf of natural gas per day) ⁽¹⁾ over the well’s peak 30 days of production. The Stenehjem 2H and 4H, producing from the Three Forks, averaged 863 boepd (686 barrels of oil per day, 1,062 mcf of natural gas per day) ⁽¹⁾ over the wells’ peak 30 days of production. In the Jore unit, Abraxas recently set production casing in the lateral of the Jore 5H and 6H, and is preparing to drill the lateral section of the Jore 7H. Abraxas owns a working interest of approximately 73% and 76% in the Stenehjem and Jore wells, respectively.

Eagle Ford

At Abraxas’ Jourdanton prospect in Atascosa County, Texas, the Cat Eye 1H averaged 491 boepd (464 barrels of oil per day, 169 mcf of natural gas per day)⁽¹⁾ over the well’s peak 30 days of production. Since being placed on submersible pump the Cat Eye 1H averaged 587 boepd (552 barrels of oil per day, 211 mcf of natural gas per day)⁽¹⁾ over the following twelve production days. The Cat Eye 1H represents the Company’s first well on the Southern fault block at Jourdanton. Abraxas owns a 100% working interest across the Jourdanton prospect.

At Abraxas’ Dilworth East prospect, in McMullen County, Texas, the Company drilled the R. Henry 1H to a total depth of 16,588 feet. Following the completion of drilling operations on the R. Henry 1H, the Company released its Eagle Ford rig. Abraxas owns a 100% working interest in the R. Henry 1H.

Abraxas recently leased an incremental 204 incremental net acres at the Company’s Dilworth East prospect in McMullen County, Texas. The prospect now consists of a combined 1,148 net contiguous acres and can accommodate up to ten 5,000-5,500 foot laterals and three 8,500 foot laterals.

Upcoming Presentation

Bob Watson, President and CEO of Abraxas, will be presenting at IPAA OGIS Florida on Tuesday, February 3, 2015 at 9:05 AM EST. The presentation will be webcast and can be accessed at http://www.investorcalendar.com/IC/CEPage.asp?ID=173603 or through Abraxas’ website, www.abraxaspetroleum.com.

Bob Watson, President and CEO of Abraxas, commented, “Although it is still quite early, the rates on our first Three Forks downspacing test are very encouraging. If Three Forks downspacing continues to prove successful, this will add an incremental 15 Three Forks locations to our inventory. Alongside our Middle Bakken downspacing test, we believe we have potentially derisked approximately 34 incremental downspaced locations at North Fork and Lillibridge.

“In the Eagle Ford, the Cat Eye 1H is producing at very encouraging rates. As the first well on our Southern Fault block this has meaningful implications for the prospectivity of the remaining 45+ locations on this acreage position. Also in the Eagle Ford, we are excited to announce the acquisition of an incremental 204 net acres at our Dilworth East prospect, which adds three 8,500 foot lateral locations. We continue to look for similar opportunities to expand our asset base in the Eagle Ford and Bakken.”

(1) The production rates for each well do not include the impact of natural gas liquids and shrinkage at the processing plant and include flared gas.

Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas exploration and production company with operations across the Rocky Mountain, Permian Basin and onshore Gulf Coast regions of the United States.

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’ filings with the Securities and Exchange Commission during the past 12 months.