Abraxas Petroleum Corporation provides an operational update on five wells in Wyoming and Texas.

-- In Brooks Draw, the Lakeside #1H, a horizontal well targeting the Turner Sandstone is currently drilling the curve at an approximate depth of 8,400'. The vertical section was drilled to a total depth of 9,600' and open-hole cores and/or logs were obtained to thoroughly evaluate the Niobrara, Turner, Mowry and Muddy formations. Abraxas Petroleum owns a 100% working interest in this well. Furthermore, one additional drilling permit has been approved for a total of four.

-- In DeWitt County, the Nordheim #2H, a horizontal development well targeting the Edwards formation was drilled to a total measured depth of approximately 17,100', including a 3,000' lateral. A liner with seven isolation packers has been set in the lateral section after encouraging indications of gas were encountered while drilling and a large multi-stage fracture stimulation will be scheduled in the fourth quarter pending availability of frac sand. Abraxas Petroleum owns a 75% working interest in this well.

-- In Bee County, the Muckleroy #1, a re-entry well has been successfully cleaned out to 9,500' and completion of the Wilcox has commenced with favorable indications. Abraxas Petroleum owns a 100% working interest in this well.

-- In Midland County, the Beulah Coleman #13, a development well targeting the Devonian and Spraberry formations was fracture stimulated in the Devonian and is currently making commercial quantities of oil and gas while still recovering frac fluid. Abraxas Petroleum owns a 100% working interest in this well which had been temporarily delayed pending connection to a pipeline.

-- In Scurry County, one well of the four-well program on our Huddleston lease has been drilled to a total depth of 3,500' and completion of the Clearfork / Glorietta formations will commence shortly. The remaining three wells are scheduled to commence sequential drilling this week. Abraxas Petroleum owns a 100% working interest in each of these wells.

-- In Coke and Scurry County, we bought out a working interest partner in two fields which will allow the Company to move forward with two West Texas development / waterflood projects that had been delayed pending the acquisition.

"Our industry is currently experiencing a shortage of proppant (frac sand) for fracture stimulations. As a result, our completions may be temporarily delayed pending availability of the necessary quantities of proppant. We are also encountering a tightening supply of rigs and oil field equipment at reasonable prices. As I promised on our last quarterly conference call, we will be issuing guidance after the more impactful wells have been brought on-line in order for the guidance to be more accurate. To protect our field personnel and minimize damage to our properties, all operations in South Texas were temporarily suspended due to Hurricane Ike; notwithstanding, the temporary shut-in's are not expected to have a material affect on our third quarter," commented Bob Watson, President and CEO.

Tags: Abraxas Petroleum Corporation