Abraxas Replaces 218% of 2003 Production

Abraxas Petroleum reports that total proved reserves at Dec. 31, 2003 for crude oil and natural gas reserves were 121.1 Bcfe, of which 56.7 Bcfe were proved developed compared to 112.5 Bcfe at year-end 2002, of which 46.3 Bcfe were proved developed. The 2002 numbers are after the sale of the Company's Canadian producing assets, which closed on Jan. 23, 2003. This 15.9 Bcfe increase, (considering 7.3 Bcfe of production during 2003) represents replacing 218% of the Company's 2003 production. Based on the Company's capital spending of $18.3 million during 2003 on retained assets, these new reserves were added at a finding cost of $1.15 per Mcfe. The independent reservoir-engineering firm of DeGolyer and MacNaughton prepared the year-end reports for both U.S. and Canadian properties of the Company.

Under SEC guidelines, Abraxas' proved reserves at Dec. 31, 2003 were computed utilizing unescalated year-end realized commodity prices of $31.03 per barrel of oil and $5.13 per MMBtu of natural gas on U.S. reserves and $31.02 per barrel of oil and $4.71 per MMBtu of natural gas on Canadian reserves. Using these prices, the discounted net present value of the proved reserves ("PV10"), before projected income taxes, at Dec. 31, 2003, using a 10% discount rate, was approximately $217 million. This PV10 compares to $136 million at the end of 2002, on retained assets, utilizing year-end 2002 realized prices.

Abraxas' President, Bob Watson, commented, "With the announcement of our year-end reserves, we have again demonstrated our business plan is working and our development activities continue to be successful. The fact that we were able to replace our 2003 production by over 200% at a very attractive finding cost of $1.15 per Mcfe testifies to the quality of our assets and should set up a continuation of this success for the near term. This replacement is even more impressive considering that a significant amount of our 2003 capital spending related to conversion of proved undeveloped reserves to proved developed, and did not generate new incremental reserves to our total. The continuing strength in the commodity markets and the demonstrated quality of our inventory of development projects should help us in our ongoing efforts to maximize shareholder value."

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