Exhibit 99.1

                                  NEWS RELEASE

                 ABRAXAS PETROLEUM EXTENDS CONSENT SOLICITATION

     SAN ANTONIO, TX (June 22, 2004) - Abraxas Petroleum Corporation  (AMEX:ABP)
today  announced  that  it  has  extended  the  consent  solicitation  ("Consent
Solicitation")   relating  to  certain   proposed   amendments   (the  "Proposed
Amendments")  to the  indenture  pursuant to which its 11 1/2% Secured Notes due
May of 2007, Series A and Series B ("Notes"),  were issued. Abraxas has extended
the  expiration  date  until 5:00 p.m.,  New York City time,  on June 28,  2004,
unless the Consent Solicitation is further extended.

The adoption of the Proposed  Amendment is  conditioned  on delivery of consents
from holders of at least a majority of the  principal  amount of the Notes.  The
adoption of the Proposed  Amendment is also subject to certain other conditions,
which are described in Abraxas'  Consent  Solicitation  Statement  dated June 3,
2004. This announcement is not an offer to purchase,  a solicitation of an offer
to purchase,  or a solicitation of consent with respect to any  securities.  The
Consent  Solicitation  is being made  solely by means of a Consent  Solicitation
Statement dated June 3, 2004. Except as otherwise described above, all terms and
conditions of the Consent Solicitation are unchanged.

Guggenheim  Capital Markets,  LLC is serving as Solicitation Agent in connection
with the  Consent  Solicitation.  Questions  regarding  the terms of the Consent
Solicitation may be directed to the Solicitation  Agent at 212-381-7500.  Global
Bondholder  Services  Corporation is serving as Tabulation Agent and Information
Agent in  connection  with the Consent  Solicitation.  Questions  regarding  the
delivery  procedures for the consents and requests for additional  copies of the
Consent  Solicitation  Statement  or related  documents  may be  directed to the
Information Agent at 212-430-3774.

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.


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