Abraxas Petroleum Corporation declares a new 6 MMcf of gas per day producer in South Texas and provides an operational update.

South Texas: In DeWitt County, the new well is currently producing approximately 6 MMcfpd naturally from the first section of the lateral with an additional six sections of lateral remaining behind pipe. The Nordheim #2H was drilled to a total measured depth of approximately 17,100', including a 3,000' lateral in the Edwards formation. A liner with seven isolation packers was set in the lateral section and while preparing the well for its multi-stage fracture stimulation, the toe of the lateral was opened and produced gas with over 4,000 psi of flowing pressure. Abraxas Petroleum owns a 75% working interest in this well.

In Lavaca County, the Henson #2H, a horizontal Edwards well originally drilled and completed in 2000, was stimulated with a multi-stage fracture treatment. As a result, production from this well increased 400% from 0.5 MMcfpd to 2.5 MMcfpd. Abraxas Energy owns a 75% working interest in this well.

West Texas: In Scurry County, four wells have been drilled on our Huddleston lease and each well is currently producing 10 - 25 barrels of oil per day from the Clearfork / Glorietta formations at approximately 3,500'. Abraxas Petroleum owns a 100% working interest in each of these wells.

In Coke County, one well of the three-well program in our Millican Reef Unit has been drilled to a total depth of 6,700', completed in the Strawn formation with production pending electrical connection. The next two wells will be drilled when commodity prices improve or service costs come down. Abraxas Petroleum owns a 92% working interest in each of these wells.

Wyoming: In Brooks Draw, the Turner sandstone tested commercial rates of oil and gas before being shut-in for construction of surface production facilities. The Lakeside #1H was drilled to a total measured depth of approximately 12,500', including a 3,800' lateral in the Turner sandstone, and successfully completed with a seven stage fracture stimulation. Abraxas Petroleum owns a 100% working interest in this well.

"We are tremendously pleased with the initial production rates out of the Nordheim #2H which is producing naturally from only one section of the lateral. The remaining six sections behind pipe represent a significant upside opportunity. We will monitor the production and pressure data to determine if and when to fracture stimulate this well. In Wyoming, we are quite intrigued with the potential of the Lakeside #1H. The successful multi-stage fracture treatment, the flow back, and the initial production tests were very positive. We have shut the well in while surface facilities and a natural gas pipeline are being constructed. We anticipate having this well on production in the first quarter which will hopefully coincide with higher crude oil prices," commented Bob Watson, Abraxas' President and CEO.

Tags: Abraxas Petroleum Corporation