Abraxas to Makes Offer to Acquire Grey Wolf Exploration

Abraxas Petroleum Corporation has commenced an exchange tender offer to acquire any or all of the outstanding shares of Grey Wolf Exploration Inc. not currently owned by Abraxas and its wholly-owned Canadian subsidiary, Canadian Abraxas Petroleum Limited, in exchange for 0.6 of a share of Abraxas common stock.

Abraxas and Canadian Abraxas currently own approximately 48.3% of Grey Wolf's outstanding common stock. The offer expires at 5:00 p.m., Calgary time, on Sept. 5, 2001, unless extended.

The offer is conditioned upon, among other things, there being validly deposited under the offer and not properly withdrawn, a majority of the Grey Wolf common shares not currently owned by Abraxas and Canadian Abraxas and approval by the Abraxas stockholders of the consummation of the offer and the issuance of the shares of Abraxas common stock in the offer.