Abraxas Announces 2011 Year-End Reserves with a 45% Increase in Oil and NGLs over 2010

Abraxas Petroleum Corporation (NASDAQ: AXAS) today announced reserves as of December 31, 2011 which reflect a 45% increase in oil and NGLs over reserves as of December 31, 2010. Abraxas' total proved reserves, including its equity share of Blue Eagle Energy, LLC's proved reserves, at December 31, 2011 were 29.0 MMBoe. In addition, DeGolyer and MacNaughton, Abraxas' independent reservoir engineering firm, estimated 24.2 MMBoe of probable reserves and 16.5 MMBoe of possible reserves on certain properties. Net capital expenditures for development of our properties in 2011 were approximately $56.9 million. Overall 4.6 MMBoe of proved reserves were added through extensions, discoveries and revisions. Production for 2011 was 1.4 MMBoe. Finding and development cost for 2011, including future development costs of $67.5 million which was the amount that exceeded the year-end 2010 estimated costs, was $17.41 per Boe. Reserve replacement was 521% for 2011. The finding and development cost and reserve replacement calculations exclude approximately 15.2 Bcf of proved gas reserves that were re-classified as a result of the SEC's 5 year PUD rule that went into effect at the end of 2009.