UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION



                             Washington, D.C. 20549



                                   F O R M 8-K

                                 CURRENT REPORT

                       Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934



                                 Date of Report
                                November 26, 2002



                          Abraxas Petroleum Corporation
             (Exact name of registrant as specified in its charter)


                                     Nevada
                 (State of other jurisdiction of incorporation)





0-19118                                             74-2584033
(Commission File Number)               (I.R.S. Employer Identification Number)




                        500 N. Loop 1604 East, Suite 100
                            San Antonio, Texas 78232
                    (Address of principal executive offices)

               Registrant's telephone number, including area code:
                                  210-490-4788





Item 5.OTHER EVENTS

See attached Press Release



The following exhibits are filed as part of this report:

NUMBER                                             DOCUMENT

99.1                                  Press release dated November 26, 2002




                                   SIGNATURES


         Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                          ABRAXAS PETROLEUM CORPORATION



                     By: ___________________________________
                         Chris Williford
                         Executive Vice President, Chief Financial
                         Officer and Treasurer


Dated:    November 26,  2002




                                                                 Exhibit 99.1

                                  NEWS RELEASE


ABRAXAS TO SELL CANADIAN ASSETS WITH PROCEEDS TO REDUCE DEBT

SAN ANTONIO, TX (November 26, 2002) - Abraxas Petroleum  Corporation  (AMEX:ABP)
today announced that it and its  wholly-owned  Canadian  subsidiaries,  Canadian
Abraxas  Petroleum  Limited and Grey Wolf Exploration  Inc., have entered into a
Purchase  and Sale  Agreement  with a  Canadian  royalty  trust to sell  certain
reserves  and   associated   gas   processing   plants  in  western  Canada  for
approximately $138 million, subject to closing adjustments.  Closing is expected
in 30-60 days with net proceeds to be used to reduce the Company's debt.

This  transaction  represents  approximately  60 Bcfe of net proved reserves and
current production of 4,500 Boepd which equates to a purchase price of $2.30 per
Mcfe and over $30,000 per Boepd. Additionally,  it represents a 7.0x multiple of
EBITDA based on  annualizing  actual  results for the first nine months of 2002.
Abraxas  will  retain some  production  and most of its  undeveloped  acreage in
Canada,  including all of its interests in the Ladyfern area.  Subsequent to the
sale, portions of this undeveloped acreage may be developed with the buyer under
a proposed farmout arrangement.

CEO Bob  Watson  commented,  "This  monetization  of a portion  of our  Canadian
assets,  on attractive  terms,  will allow  Abraxas to continue  progress on the
previously stated goal of reducing our debt and improving our balance sheet. Our
ability to realize this kind of value in the sale is clearly  indicative  of the
quality assets Abraxas has been able to accumulate. We are continuing to explore
various   alternatives  to  reduce  our  debt  including  further  asset  sales,
negotiating the restructuring  and/or  refinancing of existing debt,  exchanging
debt for equity,  issuing  additional  debt or equity  securities  or  otherwise
raising additional funds."

CIBC World Markets and BMO Nesbitt Burns acted as co-lead financial  advisors to
the Company in connection with this transaction.

Abraxas Petroleum  Corporation is a San Antonio-based  crude oil and natural gas
exploitation and production company that also processes natural gas. The Company
operates    in   Texas,    Wyoming   and   western    Canada.    Please    visit
www.abraxaspetroleum.com  for the most current and updated information.  The web
site is updated daily to comply with the SEC Regulation FD (Fair Disclosure).

Safe Harbor for  forward-looking  statement:  Statements in this release looking
forward in time involve  known and unknown  risks and  uncertainties,  which may
cause the Company's 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 the
Company for crude oil and natural gas. In addition,  the Company's  future crude
oil and natural gas production is highly  dependent upon the Company's  level of
success in  acquiring  or finding  additional  reserves.  Further,  the  Company
operates in an industry  sector where the value of securities is highly volatile
and may be  influenced  by  economic  and other  factors  beyond  the  Company's
control.  In the context of  forward-looking  information  provided  for in this
release,  reference is made to the  discussion  of risk factors  detailed in the
Company's filing with the Securities and Exchange  Commission during the past 12
months.

FOR MORE INFORMATION CONTACT:
Janice Herndon/Manager Corp. Communications
Telephone 210.490.4788
jherndon@abraxaspetroleum.com
www.abraxaspetroleum.com