Abraxas Says Yoakum Field Shut-in Due to Pipeline Constraints

Abraxas Petroleum says that due to third party pipeline constraints, the Yoakum Field in South Texas has been shut-in since November 4, 2005.

The Yoakum Field produces approximately 3.4 MMcf of natural gas per day, or approximately 16% of the Company's current daily net production. The pipeline constraints stem from capacity issues downstream that ultimately caused increased pipeline pressures upstream, and the gas from the Yoakum Field is currently unable to meet the high-pressure demands of the third party pipeline.

"We are currently reviewing every possible alternative, some of which involve negotiations with other operators as well as third parties, to relieve these pipeline constraints. We believe these constraints are a short-term issue that can be relieved with additional compression or by the arrival of seasonal weather, thus increasing demand and reducing pipeline pressures. The loss of this production should not affect our exit rate guidance of 19 - 21 MMcfepd, provided this shut-in production is back on-line by year-end; however, it will affect our overall fourth quarter and full year production figures," commented Bob Watson, Abraxas' President and CEO.