In the Oates SW Field of West Texas, three wells are currently active:-- The Hudgins #37-1 was drilled to a total depth of 15,000', including a 1,270' horizontal lateral that penetrated the Devonian formation; -- The La Escalera #2 has been successfully cleaned out to 13,300' and perforated in the Atoka formation; and -- The La Escalera #5-1 is currently drilling below 6,600' towards an approximate total depth of 12,500' to test the Lower Wolfcamp formation.

The Hudgins #37-1 and the La Escalera #2 are currently in the completion phase and should be placed on production within the next few weeks. The Company plans to start the horizontal lateral on the next Devonian re-entry in the near future and provided the La Escalera #5-1 is successful, an offset location will be drilled immediately.

In South Texas, a rig has moved onto the first of two planned wells and the Simek-Cook #1 is scheduled to spud later this week. This well, located in DeWitt County, will be vertically drilled to test the Wilcox formation at an approximate depth of 8,900'.

Abraxas owns 100% working interest in all four of these wells.

"The Oates SW Field continues to prove itself as a very valuable asset as it provides us the potential for multiple productive formations. We are quite encouraged by the indications received during the drilling of the Devonian and the re-entry of the Atoka wells and look forward to definitive results when these wells are placed on-line in the very 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.