Abraxas Provides Operational Update; Announces Upcoming Presentations

Abraxas Petroleum Corporation (NASDAQ:AXAS) is pleased to provide the following operational update.

Williston Basin

On the Abraxas’ North Fork block in McKenzie County, ND, the Jore Federal 2-11-3H (76% working interest) produced 15,289 BOE (11,785 BO and 21,022 MCF gas) over its first 30 days from the Three Forks. The well continues to flow 367 BOEPD (325 BOPD and 250 MCFPD) on a restricted choke. Additionally, the well is expected to come in over $1mm below its originally projected AFE. Completion operations remain ongoing at the Ravin 2H and 3H. The Ravin 2H is estimated to be completed and flowing to sales in mid-December after which completion activities will move to the 3H.

At Abraxas’ Lillibridge PAD at North Fork, the Company’s wholly owned drilling rig continues to run efficiently irrespective of the inclement weather. As mentioned in the Company’s November 12 operational update, surface casing has been set on all four wells. Subsequent to the Company’s November 12 release, intermediate hole and the curve have been drilled with casing set on the Lillibridge 1H. The rig has moved and is currently drilling intermediate hole on the Lillibridge 2H. After receiving final partner consents for the four well PAD, Abraxas will hold an approximately 37.4% working interest across the four Lillibridge wells.

Eagle Ford

At Abraxas’ WyCross Prospect in McMullen County, Texas, the Company successfully completed the Cobra B 1H (25% working interest) with a 19 stage fracture stimulation on November 24 th. The well is currently flowing to sales on a restricted choke and the Company will furnish a 30 day IP rate when available. The Cobra B 1H is projected to come in over $1mm below its originally projected AFE. Furthermore, the Mustang 1H (25% working interest) was recently drilled and pipe set to 15,004 feet with completion scheduled to start December 10. The rig is currently rigging up on Abraxas’ third well, the Corvette 1H (25% working interest).

Bob Watson, President and CEO of Abraxas, commented, “We remain enthused with the productivity of the wells we continue to bring on, evidenced by the Jore Federal 2-11-3H and Cobra B1H. Our operations in North Dakota and in the Eagle Ford continue to run efficiently with drilling times and costs continuing to come down. We remain focused on continuing to exploit these efficiency gains in an effort to drive down costs while targeting a step change in production for Abraxas.”

Upcoming Presentations

Abraxas will be presenting at the Dahlman Rose & Co Ultimate Oil Service and E&P Conference in New York, NY at 7:50 am EST (6:50 am CST, 4:50 am PT) on December 3, 2012. The live audio webcast with the corresponding slide presentation will be available on the company’s website at, http://www.abraxaspetroleum.com, in the Investor Relations section under Webcasts/Presentations.

Abraxas will also be presenting at the Capital One Southcoast Energy Conference on December 4, 2012.

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

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.

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