EX-5.1 12 a2102358zex-5_1.txt EXHIBIT 5.1 Exhibit 5.1 February 5, 2003 Abraxas Petroleum Corporation Eastside Coal Company, Inc. Sandia Oil & Gas Corporation Sandia Operating Corp. Wamsutter Holdings, Inc. Western Associated Energy Corporation 500 North Loop 1604 East Suite 100 San Antonio, Texas 78232 Re: Registration Statement on Form S-1 filed by Abraxas Petroleum Corporation Dear Sirs: We have acted as counsel to Abraxas Petroleum Corporation, a Nevada corporation ("Abraxas"), Eastside Coal Company, Inc., a Colorado corporation ("Eastside"), Sandia Oil & Gas Corporation, a Texas corporation ("Sandia Oil & Gas"), Sandia Operating Corporation, a Texas corporation ("Sandia Operating"), Wamsutter Holdings, Inc., a Wyoming corporation ("Wamsutter"), and Western Associated Energy Corporation, a Texas corporation ("Western"), in connection with the registration under the Securities Act of 1933, as amended (the "Registration Statement"), of an aggregate of $184,000,000 principal amount of Abraxas' 11-1/2% Secured Notes Due 2007, Series A (the "Notes"), 5,633,291 shares of common stock of Abraxas (the "Common Stock") and the guarantee to be endorsed on the Notes by Eastside (the "Eastside Guarantee"), Sandia Oil & Gas (the "Sandia Oil & Gas Guarantee"), Sandia Operating (the "Sandia Operating Guarantee"), Wamsutter (the "Wamsutter Guarantee") and Western (the "Western Guarantee"). We have examined and are familiar with originals or copies, the authenticity of which have been established to our satisfaction, of all such documents, corporate records, certificates of officers of Abraxas, Eastside, Sandia Oil & Gas, Sandia Operating, Wamsutter and Western and public officials, and other instruments as we have deemed necessary to express the opinion hereinafter set forth. In expressing our opinion as to the valid issuance of the Notes, Common Stock, Eastside Guarantee, Sandia Oil & Gas Guarantee, Sandia Operating Guarantee, Wamsutter Guarantee and Western Guarantee we express no opinion as to compliance with federal and state securities laws. Based upon the foregoing, it is our opinion that: (1) the Notes to be sold as described in the Registration Statement have been duly and validly authorized for such sale and, when so sold and delivered, will be validly issued, fully paid and nonassessable; (2) the Notes, when sold and delivered, will be binding obligations of Abraxas except to the extent that the enforceability of the Notes may be limited by bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other laws or decisions relating to or affecting the enforcement of creditors' rights generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law); (3) the Common Stock to be sold as described in the Registration Statement has been duly and validly authorized for such sale and, when so sold and delivered, will be validly issued, fully paid and nonassessable; (4) the Eastside Guarantee will be validly issued, fully paid and nonassessable; (5) the Eastside Guarantee will be a binding obligation of Eastside except to the extent that the enforceability of the Eastside Guarantee may be limited by bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other laws or decisions relating to or affecting the enforcement of creditors' rights generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law; (6) the Sandia Oil & Gas Guarantee will be validly issued, fully paid and nonassessable; (7) the Sandia Oil & Gas Guarantee will be a binding obligation of Sandia Oil & Gas except to the extent that the enforceability of the Sandia Oil & Gas Guarantee may be limited by bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other laws or decisions relating to or affecting the enforcement of creditors' rights generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law; (8) the Sandia Operating Guarantee will be validly issued, fully paid and nonassessable; (9) the Sandia Operating Guarantee will be a binding obligation of Sandia Operating except to the extent that the enforceability of the Sandia Operating Guarantee may be limited by bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other laws or decisions relating to or affecting the enforcement of creditors' rights generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law; (10) the Wamsutter Guarantee will be validly issued, fully paid and nonassessable; (11) the Wamsutter Guarantee will be a binding obligation of Wamsutter except to the extent that the enforceability of the Wamsutter Guarantee may be limited by bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other laws or decisions relating to or affecting the enforcement of creditors' rights generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law; (12) the Western Guarantee will be validly issued, fully paid and nonassessable; and (13) the Western Guarantee will be a binding obligation of Western except to the extent that the enforceability of the Western Guarantee may be limited by bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other laws or decisions relating to or affecting the enforcement of creditors' rights generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law. The opinion expressed herein is limited to the laws of the State of Texas, the corporation laws of the State of Nevada, and the federal laws of the United States. We hereby consent to the use of our name in the Registration Statement as counsel who has expressed an opinion upon certain legal matters in connection with the issue and sale of the Notes, Common Stock, Eastside Guarantee, Sandia Oil & Gas Guarantee, Sandia Operating Guarantee, Wamsutter Guarantee and Western Guarantee (including specifically the reference contained under the caption "Legal Matters") and to the use of this opinion as an exhibit to the Registration Statement. In giving this consent, we do not hereby admit that we are in the category of persons whose consent is required under Section 7 of the Act. Yours very truly, COX & SMITH INCORPORATED By: /s/ Steven R. Jacobs ------------------------------- Steven R. Jacobs, For the Firm