Exhibit 99.1


                          Abraxas Petroleum Corporation
                       500 N. Loop 1604 East, Suite 100,
                            San Antonio, Texas 78232
                 P.O. Box 701007, San Antonio, Texas 78270-1007
                Office: 210.490.4788 Exec/Acctg Fax: 210.490.8816

                                  NEWS RELEASE

           Abraxas Announces Expanded Capital Spending Budget for 2005
                         and Provides Operational Update

SAN ANTONIO (Sept. 14, 2005) - Abraxas  Petroleum  Corporation  (AMEX:ABP) today
announced that the Board of Directors  approved an expanded capital  expenditure
budget of $32 million for 2005 and provided an operational update.

The $10 million  increase  over the initial  capital  expenditure  budget of $22
million will be allocated  predominantly  to Wyoming and the Oates SW Field area
in West  Texas and will be funded  out of cash flow and  availability  under our
credit facility.

Recently announced  operational  results have positively  impacted our total net
production,  which currently  exceeds 21.5 MMcfepd and represents a 41% increase
over 2nd quarter average.

In the Oates SW Field  area,  the La  Escalera  #2 is  cleaning  up after a frac
treatment,  following  delays  in  obtaining  service  equipment.  In  addition,
re-entry  operations have commenced on an initial  Woodford test on the recently
acquired Hudgins Ranch.

In Brooks Draw,  Wyoming,  the Red Tail Hawk #1, reached a total depth of 9,130'
and  production  casing  was set  after  encountering  encouraging  oil shows in
multiple  zones.  The Prairie Falcon #2 and the Red Tail Hawk #1 currently await
completion equipment. The Bald Eagle #1 is drilling below 5,800'. Abraxas owns a
100% working interest in all five of the abovementioned wells.

"We are extremely pleased that our current net production  exceeds our exit rate
guidance for the year, and we have several wells currently awaiting  completion.
Even though we continue to find  ourselves in a tightening  environment in terms
of available rigs and related  services,  we are optimistic about our ability to
achieve  our  expanded  $32  million  capital   program.   As  these  wells  are
successfully  completed,  we anticipate a continually growing production profile
throughout 2005 and into 2006", commented Bob Watson, President and CEO.

In connection with the  appointment of Paul A. Powell,  Jr. to Abraxas' Board of
Directors,  45,000  options have been awarded to Mr.  Powell at a price of $4.59
per share.

Abraxas Petroleum  Corporation is a San Antonio-based  crude oil and natural gas
exploitation and production company with operations in Texas and Wyoming.

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'  filing with the Securities
and Exchange Commission during the past 12 months.


FOR MORE INFORMATION CONTACT:
Barbara M. Stuckey/Director of Corporate Development
Direct Telephone 210.757.9835
Main Telephone 210.490.4788
bstuckey@abraxaspetroleum.com
www.abraxaspetroleum.com