8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

January 8, 2008

Date of Report (Date of earliest event reported)

ABRAXAS PETROLEUM CORPORATION

(Exact name of registrant as specified in its charter)

Nevada	0-19118	74-2584033
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

500 N. Loop 1604 East, Suite 100

San Antonio, Texas 78232

(210) 490-4788

(Address of principal executive offices and Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure

The Company’s CEO, Robert L.G. Watson, will be presenting at the Pritchard Capital Energy Conference in San Francisco on January 8, 2008. Attached as Exhibit 99.1 are materials that Mr. Watson will present at the IPAA Symposium.

The information in this Report (including Exhibits 99.1 and 99.2) is furnished pursuant to Item 7.01 and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of the Section. The information in this Report will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Slide presentation

99.2 News Release

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Pursuant to the requirements 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: /s/ Chris E. Williford

Chris E. Williford

Executive Vice President, Chief Financial

Officer and Treasurer

Dated: January 8, 2008

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EX-99

ABRAXAS PETROLEUM CORPORATION

www.abraxaspetroleum.com

Exhibit 99.2

NEWS RELEASE

Abraxas to Present at the Pritchard Capital Energy Conference

SAN ANTONIO (Jan. 8, 2008) - Abraxas Petroleum Corporation (AMEX:ABP) is scheduled to present at the Pritchard Capital Energy Conference in San Francisco on Tuesday, January 8, 2008. Robert L.G. Watson will be presenting at the conference - the corresponding PowerPoint presentation will be posted on the Company’s website, http://www.abraxaspetroleum.com, in the Investor Relations section under Webcasts / Presentations, as this event is not being webcast. Over 80 companies are scheduled to present at this event entitled “Energize 2008”.

Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas exploration and production company with operations in Texas and Wyoming. Abraxas Petroleum Corporation also owns a 47% interest in an upstream master limited partnership, Abraxas Energy Partners, L.P., which entitles Abraxas Petroleum Corporation to receive its proportionate share of cash distributions made by Abraxas Energy Partners, L.P.

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 natural gas and crude oil. In addition, Abraxas’ future natural gas and crude oil 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’ filings with the Securities and Exchange Commission during the past 12 months.

FOR MORE INFORMATION CONTACT:

Barbara M. Stuckey/Vice President - Corporate Development

Direct Telephone 210.757.9835

Main Telephone 210.490.4788

bstuckey@abraxaspetroleum.com

www.abraxaspetroleum.com

500 N. Loop 1604 East, Suite 100, San Antonio, Texas 78232

Office: 210.490.4788 Fax: 210.490.8816

EX-99

Exhibit 99.1

The information presented herein may contain predictions, estimates and other forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Although the Company believes that its expectations are based on
reasonable assumptions, it can give no assurance that its goals will be achieved.  Important factors that could cause actual results to differ materially
from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, the need to develop
and replace reserves, environmental risks, competition, government regulation and the ability of the Company to meet its stated business goals.

Energize 2008

January 8-10

San Francisco

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AMEX: ABP

2

Company Overview

Abraxas Petroleum Corporation

AMEX:ABP

Market capitalization ~ $160 million

Total enterprise value ~ $143 million

$0 debt & $17 million in cash

Options: CBOE and PCX

Fully diluted shares outstanding ~ 50 million

Ownership ~ 15% insider

   ~ 28% institutional

Average trading volume (3 mos) ~ 200,000 shares per day

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Closed: May 25, 2007

MASTER LIMITED PARTNERSHIP (Abraxas Energy Partners, L.P.)

Contributed 65 Bcfe of proved reserves

ABP Ownership = 47% interest

AMEX: ABP

3

Recent Transactions

$  157.5

TOTAL USES:

$  157.5

TOTAL SOURCES:

7.0

Excess cash (ABP):

Fees & expenses:

Repay credit facility:

Redeem existing notes: ⁽¹⁾

USES:

10.3

0.9

$  139.3

(millions)

35.0

22.5

$  100.0

(millions)

SOURCES:

Société Générale credit facility:

5.9 million shares of ABP stock:

53% MLP to institutional investors:

⁽¹⁾ Includes call premium and interest

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AMEX: ABP

4

Transaction Results

Results:

Debt-free Abraxas Corp.

(interest payments = $16 million/yr)

Retained control of the properties

Significant cash-flow stream to Abraxas Corp.

Accelerate drilling activities  

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Abraxas Energy Partners, L.P.

Purchase & Sale Agreement: December 11, 2007

Seller: St. Mary Land & Exploration Company

$140 million

Rockies & Mid-Continent

~1,500 gross (240 net) wells

Net Reserves: ~10,250 MBOE

82% PDP

52% Oil

Net Production: ~2,050 BOE per day

R/P Ratio: ~14 years

Swaptions: $80.00 / $8.00

Closing: Q1 2008

AMEX: ABP

5

Recent Events

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AMEX: ABP

6

‘Do the Math’

Cash Distributions / Unit

Transaction Value / Mcfe

R/P Ratio

% Oil

% PDP

?

Accretive

$1.50

~$3.00

$2.28

$3.43

12 years

14 years

10 years

32%

52%

10%

73%

82%

63%

MLP pro-forma

St. Mary
Acquisition

MLP today

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Distribution of Assets

Assets Contributed to MLP

Highlights ⁽¹⁾

Proved Reserves (Bcfe):                     65.4

   -Percent Proved Developed:              58%

   -Percent Natural Gas                        91%

Q3 07 Net Production (Mcfepd):       14,800

Gross Acres:                                 16,400

Net  Acres :                                   13,500

Delaware Basin

Cherry Canyon

EOG Montoya

Other Delaware Basin ~85%

Oates SW – 4 PDP / 5 PUD

Gulf Coast Basin

Edwards

Portilla

AMEX: ABP

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Delaware Basin

Other Delaware Basin ~15%

Oates SW – 4 wells plus

     Woodford/Barnett

      “Resource Play”

Eastern Shelf

IRA / Martin

Highlights ⁽¹⁾

Proved Reserves (Bcfe):                  33.4

-Percent Proved Developed:            29%

   -Percent Natural Gas:                   67%

Q3 07 Net Production (Mcfepd):      3,600

Gross Acres:                               88,200

Net Acres:                                  76,200

Powder River Basin

Mowry Shale

“Resource Play”

Assets Retained at ABP

Gulf Coast Basin

Edwards – 2 PUD

Wilcox

⁽¹⁾ Pro forma as of 12/31/06, unless noted otherwise,

excludes effect of recent re-classification of reserves

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Quality assets

High ownership interest (79% WI)

Operational control (99%)

Large acreage positions

Substantial upside

Natural gas (67%)

Operations in Texas and Wyoming

> 10 year inventory of projects
on existing leasehold

High impact projects

AMEX: ABP

8

Retained Asset Base

Dec-07 reflects the transactions announced on May 25, 2007

and includes 47% of the proved reserves contributed to the MLP,
but excludes the effect of recent re-classification of reserves

Dec 31,

Acquisitions:
< $0.65 / Mcfe

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AMEX: ABP

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ABP (Stand-Alone) Valuation

$ 89

$ 89

$ 16.66

5.36

Abraxas MLP units (MM)

$ 237

$ 208 – $ 266

Total ABP Equity Value:

Price Per Unit

Price Per Acre

Undeveloped Acreage:

$ 237

$ 208 – $ 266

Total Value:

$ 0

$ 0

Less: Debt

49.0

Shares Outstanding (MM)

$ 25

$ 25

Cash and other assets (1)

In-Ground Value

46,500

15,000

  2,500

33.4

Value Per Share

$ 300 - $ 700

$ 800 - $ 1,200

$ 400 - $ 700

$ 2.00 - $3.00

Multiple Range

$ 4.85

$ 4.24 - $ 5.44

$ 23

$ 15

$ 1

$ 14 – $ 33

$ 12 – $ 18

$ 1 – $ 2

   - Mowry Shale

   - Woodford Shale

   - Wilcox Exploratory

$ 84

$ 67 - $ 100

Proved Reserves (Bcfe):

Valuation
Midpoint ($MM)

Valuation Range
($MM)

ABP Assets

(1)

Cash, GWE common stock

                workover rigs, vehicles, and

                surface acreage / yards

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AMEX: ABP

10

Upside Potential

$ 96

$ 64

$ 32

64

59

Probable & Possible ⁽³⁾

$ 38

$ 25

$ 13

Upside Potential
Value per Share

$ 1,884

$ 1,256

$ 628

1,256

559

Total

$ 37

$ 600

$ 555

$1.00 per Mcfe
($MM)

$ 19

$ 300

$ 277

$0.50 per Mcfe
($MM)

$1.50 per Mcfe

($MM)

Potential

Bcfe ⁽²⁾

Number of potential /
identified projects ⁽¹⁾

15

300

185

Exploratory Wilcox Plays

Mowry Shale Oil Play

Woodford Shale Play

$ 56

37

$ 900

600

$ 832

555

⁽¹⁾ Woodford Shale on 80 acre spacing and Mowry Shale on 160 acre spacing
⁽²⁾ Capital required $1.8 billion – volumes and resultant values are mid-point of range⁽³⁾ Net of reserves in specific plays

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Drill Bit Growth

targeting Conventional Reservoirs

& emerging Resource Plays   

Increase Shareholder Value

through……

AMEX: ABP

11

Operational Goals

Reserve Ratio Improvement

by converting
proved undeveloped and un-booked reserves
to the proved developed category   

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SOUTH TEXAS

Gulf Coast Basin

Bee, DeWitt, Goliad,
Karnes & Live Oak Counties

WEST TEXAS

Delaware Basin

Pecos & Ward

Counties

••••

Eastern Shelf

Coke, Dawson, Howard,

Martin, Midland, Mitchell

& Scurry Counties

WYOMING

Powder River Basin

Converse & Niobrara

Counties

AMEX: ABP

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Abraxas Corp. Properties

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Proved Reserves – 33.4 Bcfe ⁽¹⁾

(1)    Pro forma as of 12/31/06, excludes
effect of recent re-classification of reserves

AMEX: ABP

13

Reserves / Acreage

West Texas

28%

South Texas

5%

Wyoming

67%

Net Undeveloped Acres ~ 63,500 ⁽¹⁾

West Texas

79%

South Texas

18%

Wyoming

3%

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AMEX: ABP

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Conventional Reservoirs

Developing Existing Proved Reserves

Projects for 2008 and beyond…
“the low hanging fruit”

Edwards

Wilcox

Delaware

        Mississippian / Devonian / Montoya

IRA

Clearfork / Spraberry / Strawn Reef

Oates SW

          Devonian

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Oates SW Field

Wellbores available for re-entry

Pecos Co.

~15,000 acres

AMEX: ABP

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> 75 sq. miles of 3-D

Hudgins 11-1:

Woodford

La Escalera 5-1:  
Lower Wolfcamp

Manzanita 1H:
2007 Devonian

La Escalera 2:

Atoka

ABP retained wells

ABP retained the following:

   Surface rights

   Mineral rights

   Executive rights   

   All formations from MLP

     wells w/o proved reserves  

Hudgins 37-1H:

Devonian

Elsinore Cattle 56:

Devonian

Hudgins 34-2H:

Devonian

La Escalera 1AH:

Devonian

Wells contributed to MLP

(plus 3 Devonian PUDs &
2 Montoya PUD completions)

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Pecos

ABP: Oates SW Field

~ 15,000 acres

(gained valuable reservoir knowledge &
producing small amount of dry gas from
the Woodford)

CHK 50% / Petro-Hunt 50%

~100,000 acres

3-D seismic swap

1 flowing gas)

Petro-Hunt

    (2 permitted &

Reliance / CHK / PXD

3-D seismic & data swap

PXD

(1 drilled &

1 permitted)

AMEX: ABP

16

Woodford Shale Play

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Delaware Basin Shale Players:

ABP, COP, CHK, CRZO, CWEI,
DVN, ECA, EOG, FST, KWK,
PPP, PXD, RRC, SWN, XTO,
Reliance and Petro-Hunt

Barnett Shale Players:

BEXP, COP, CHK, CRZO,
DNR, DVN, ECA, EOG, IFNY,
KWK, PLLL, RRC, XTO

4 (+)

?

100 – 1,000

Barnett: 500 – 1,000

Woodford: 100 – 400

9,000 – 16,000

0.7 – 3.0

1.0 – 9.0

Mississippian /

Devonian

Delaware Basin Shale

(Barnett / Woodford) ⁽¹⁾

10 – 26

Recovery factor (%)

2 (+)

Average well cost ($MM)

50 – 150

Gas-in-place (Bcf / 640 acres)

50 – 1,000

Thickness (feet)

0.5 – 1.9

Thermal maturity (Ro)

6,500 – 8,500

Depth (feet)

Mississippian

Geologic age

~ 4.5

Total organic content (%)

Ft. Worth Barnett
Shale ⁽²⁾

AMEX: ABP

17

Gas Shale Play Comparison

⁽¹⁾    Natexis Bleichroeder Inc.,  CHK and internal estimates

⁽²⁾  Pickering Energy Partners

17

AMEX: ABP

18

Mowry Shale Oil Play

ABP: Brooks Draw

10 wells

(5 horizontal / 5 vertical)

4 vertical wells producing from
Mowry
(commingled with other zones)

23 sq. miles proprietary 3-D seismic survey

⁽¹⁾ Gross acres (>92% MI), >12,000 HBP

AEZ/BEXP: Krejci
Horizontal Mowry Shale

~ 15 to the SE of Brooks Draw

Brooks Draw

~50,000 acres ⁽¹⁾

Converse & Niobrara Counties, Wyoming

Map of leasehold in Converse & Niobrara Counties, Wyoming

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Mowry Shale Players:

ABP, AEZ, BEXP

Bakken Shale Players:

BBG, BEXP, COP, EOG,
MRO, SM, WLL and several
privately-held companies

Dolomitic siltstone

Reservoir Rock

Siliceous silty shale

640

Well spacing (acres)

160

2.0 – 3.0

150 - 500

110’ - 175’

7,500’ – 10,000’

Lower Cretaceous

Mowry Shale ⁽¹⁾

3.0 – 4.5

Average well cost ($MM)

200 - 500

Potential EUR (MBOE) per well

10’ - 50’

Thickness (feet)

10,000’ - 11,000’

Depth (feet)

Upper Devonian /
Lower Mississippian

Geologic age

Bakken Shale ⁽²⁾

AMEX: ABP

19

Oil Shale Play Comparison

⁽¹⁾    AEZ/BEXP, Powder River Energy Partners, R.P. Nixon paper and internal estimates

⁽²⁾   EOG, BEXP, OG Journal, Landmark, F.F. Meissner paper

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AMEX: ABP

20

Exploratory Plays

Potentially High Impact

Targeting the Wilcox Formation

Plummer & Tuleta
Prospects,
Bee County

Janssen Prospect,
Karnes County

Goebel Prospect,
Live Oak County

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Capital Expenditure Budget $35 million *

Single well impact to guidance !

Historically, $4,500 of capital expended = 1 Mcfepd

AMEX: ABP

21

2008

* excludes Abraxas Energy Partners, L.P. capital expenditures

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Maintain financial flexibility and liquidity

Prioritize opportunity set

AMEX: ABP

22

Capture the Upside

Increase shareholder value

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Niche exploration and production company

High quality assets with substantial upside

Goals:

Drill Bit Growth

Reserve Ratio Improvement

AMEX: ABP

23

Summary

CONTINUE TO INCREASE SHAREHOLDER VALUE

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www.abraxaspetroleum.com

Manzanita 1H

Hudgins Ranch,

Delaware Basin,
West Texas

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