EXHIBIT 99.1

                          ABRAXAS PETROLEUM CORPORATION
                            www.abraxaspetroleum.com
           500 N. Loop 1604 East, Suite 100, San Antonio, Texas 78232
                Office: 210.490.4788 Exec/Acctg Fax: 210.490.8816

                                  NEWS RELEASE

  Abraxas Replaces 280% of 2005 Production at a Finding Cost of $2.03 per Mcfe

SAN ANTONIO (Feb. 27, 2006) - Abraxas  Petroleum  Corporation  (AMEX:ABP)  today
announced total proved oil and natural gas reserves of 104.7 Bcfe as of December
31, 2005, a 12% increase  over December 31, 2004.  Natural gas reserves  account
for  82% of the  total  proved  reserves  and  48%  were  classified  as  proved
developed. Abraxas operates over 95% of its proved reserve base.

The Company replaced 280% of production in 2005,  predominantly from development
drilling,  at an all-in  finding  and  development  cost of $2.03 per Mcfe.  The
Company's proved reserve life index exceeds 17 years, when measured against 2005
production.

The  present  value,  using a 10%  discount  rate,  of the future net cash flows
before income tax ("PV10") of the Company's  proved oil and natural gas reserves
is  approximately  $311.9 million using oil and natural gas prices of $56.92 and
$8.84, respectively. Such prices were based on market prices for oil and natural
gas  on  December  31,  2005,  as  adjusted  for  the  Company's  average  basis
differential.

The  Company  further  engaged  the  independent  reservoir-engineering  firm of
DeGolyer  and  MacNaughton  to  evaluate  its  probable  and  possible   reserve
potential,  in addition to its proved  reserve  base.  As of December  31, 2005,
probable oil and natural gas reserves were estimated at 27.4 Bcfe with a PV10 of
$63.4 million and possible oil and natural gas reserves were  estimated at 171.5
Bcfe with a PV10 of $161.2 million.  All reserve  categories  combined amount to
303.6 Bcfe and $536.5 million in PV10.

"The  fact  that we were  able to  replace  280% of our  2005  production  at an
attractive  finding cost  testifies to the quality of our assets and the ability
of our technical team. This reserve replacement is truly significant considering
47% of our 2005 capital  expenditures  were related to the  conversion of proved
undeveloped or  non-producing  reserves to proved  developed  reserves.  For the
first time in many years, we had our independent  engineering  firm estimate our
probable and possible reserves in order to provide greater  transparency for our
shareholders  and  provide  support to our large  inventory  of  projects on our
existing leasehold," commented Bob Watson, Abraxas' President and CEO.

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