Abraxas Announces 2014 Year End Reserves Grew 37% over 2013 to 42.4 MMBoe; Provides First Quarter 2015 Guidance

Abraxas Petroleum Corporation (“Abraxas” or the “Company”) (NASDAQ:AXAS) today announced 2014 year end reserves grew 37% over 2013 to 42.4 MMBoe, and also provided first quarter 2015 guidance.

December 31, 2014 Reserves

As of December 31, 2014, Abraxas’ proved oil and natural gas reserves consisted of approximately 42.4 MMBoe, a net increase of 11.4 MMBoe, or approximately 37%, over 2013 year end reserves of 31.0 MMBoe. The majority of the reserve additions came from the Bakken where the Company benefited from an upward revision in the type curve and successful downspacing tests in the Middle Bakken and Three Forks. The additional undeveloped locations on the Southern Fault Block at Jourdanton remain unbooked. December 31, 2014 reserves consisted of approximately 29.4 million barrels of oil, 3.7 million barrels of NGLs and 55.9 billion cubic feet of natural gas. Proved developed producing reserves grew 34% year over year to 17.4 MMBoe and comprised 41% of proved reserves as of December 31, 2014. The present value, using a 10% discount rate, of future net cash flows before income taxes of Abraxas’ proved reserves was approximately $637.4 million, using 2014 average prices of $4.35/mcf of natural gas and $95.28/bbl of oil. The independent reserve engineering firm DeGolyer and MacNaughton prepared a complete engineering analysis on 98.2% of Abraxas’ proved reserves on a Boe basis.

The following table outlines changes in Abraxas’ proved reserves from December 31, 2013 (inclusive of Canadian reserves, production and asset sales):

Fourth Quarter 2014 Production

Production for the fourth quarter of 2014 averaged approximately 6,785 boepd (4,560 barrels of oil per day, 9,027 mcf of natural gas per day, 720 barrels of NGLs per day). Production for 2014 averaged approximately 5,720 boepd (3,820 barrels of oil per day, 7,944 mcf of natural gas per day, 568 barrels of NGLs per day). 2014 production numbers exclude Canadian production, which is now classified as discountinued operations. This change in classification removed 67 boepd (32 barrels of oil per day, 128 mcf of natural gas per day, 3 barrels of NGLs per day) from 2014 production numbers. Abraxas production for the final two weeks of December averaged approximately 8,000 Boepd with the productive capacity of the Company estimated to be in excess of 8,500 Boepd. The delta between actual production volumes and the productive capacity was due to third-party gas processing constraints in the Bakken, well downtime in the Eagle Ford, Bakken and Permian.

2014 CAPEX

For the year ended December 31, 2014, Abraxas’ capital expenditures totaled approximately $192.8 million.

1Q15 and 2015 Guidance

Abraxas is providing the following 1Q15 guidance and is reiterating the Company’s Full Year 2015 guidance. First quarter guidance was negatively impacted by continued downtime, flaring and shut-ins primarily in the Williston and Permian basins.

Bob Watson, President and CEO of Abraxas, commented, “Despite significant commodity price volatility in 2014, Abraxas put together another year of impressive production and reserve growth. Statistically, Abraxas posted F&D costs of $13.09/boe(1), adjusted F&D costs including future development costs of $19.48/boe(2) and reserve replacement of 710%(3).”

“Following the violent collapse in commodity prices, Abraxas swiftly curtailed the Company’s capital plan in December 2014. Absent a sustained recovery in commodity prices, Abraxas may elect to further curtail spending by delaying completions until service costs and commodity prices justify sufficient returns on capital. Despite the slowdown in drilling activity, we are not sitting idle as we continue to evaluate opportunities to add to our production and reserve base primarily in the Bakken and Eagle Ford. In evaluating every opportunity, Abraxas maintains its intense focus on preserving the Company’s pristine balance sheet and abundant liquidity. Moreover, each opportunity must be accretive and earn a suitable full cycle rate of return.”

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

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.