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.

4th Annual Small-Cap
Oil & Gas Conference

“Building Blocks”

February 21-22, 2008

AMEX: ABP

Company Overview

Abraxas Petroleum Corporation

AMEX:ABP

Market capitalization ~ $180 million

Total enterprise value ~ $172 million

$0 debt & $8 million in cash

Options: CBOE and PCX

Fully diluted shares outstanding ~ 50 million

Ownership ~ 15% insider

~ 28% institutional

Average trading volume ~ 235,000 shares per day

Abraxas Energy Partners, L.P.

Properties

Abraxas Operating, LLC

Private Investors

6.0 million common units

Abraxas General Partner, LLC

227,232 general partner units

Abraxas Energy

Investments, LLC

5.13 million common units

100%

45%

53%

Lehman Fiduciary

Citigroup Merrill Lynch

Third Point Tortoise

Others

No incentive distribution rights or
subordinated units !

11.36 million units
outstanding

AMEX: ABP

Contributed
$100 million

Contributed 65
Bcfe

St. Mary Land & Exploration Property Acquisition

Closed: January 31, 2008

Rockies & Mid-Continent

~1,500 gross (240 net) wells

Top 80% PV: 196 gross (94 net)

82% PDP / 52% Oil

R/P Ratio: ~14 years

Swaps: $87.50 / $8.27

Abraxas Energy

$126.0 million

Net Reserves: 57.2 Bcfe (9,525 MBOE)

Net Production: 11.7 MMcfepd

Abraxas Petroleum

$5.6 million

Net Reserves: 4.3 Bcfe (725 MBOE)

Net Production: 0.6 MMcfepd

AMEX: ABP

Recent Events

Net proved reserves as of December 1, 2007

Estimated daily net production for January, 2008

Northern Rockies

Southern Rockies

Mid-Continent

ARK-LA-TEX

Gulf Coast

Permian

AMEX: ABP

‘Do the Math’

Original MLP

St. Mary
Acquisition

MLP pro-forma

% PDP

63%

82%

73%

% Oil

10%

52%

32%

R/P Ratio

10 years

14 years

12 years

Transaction Value / Mcfe

$3.43

$2.28

~$3.00

Cash Distributions / Unit

$1.50

Accretive

Property Overview

AMEX: ABP

Proved Reserves (Bcfe): 37.7

- Proved Developed: 29%

- Natural Gas: 67%

Daily Production (Mcfepd): 3,500

- Operated ~95%

Abraxas Petroleum Corporation

Proved Reserves (Bcfe): 115.2

- Proved Developed: 74%

- Natural Gas: 68%

Daily Production (Mcfepd): 25,000

- Operated ~75%

Abraxas Energy Partners, L.P.

ABP net proved reserves as of December 31, 2006

Abraxas Energy original net proved reserves as of June 30, 2007

St. Mary net proved reserves as of December 1, 2007

Estimated daily net production for January 2008, incl. St. Mary

Abraxas Petroleum

Abraxas Energy

ABE & ABP

Quality assets

High ownership interest (79% WI)

Operational control (~95%)

Large acreage positions

Substantial upside

Product balanced (~60% gas)

Operations in Texas, Mid-Continent & Rockies

> 10 year inventory of projects on existing leasehold

High impact projects

AMEX: ABP

Asset Base

Feb-08 reflects the MLP formation & St. Mary acquisition

and includes 47% of the MLP’s proved reserves

Dec 31,

Acquisitions:
< $0.65 / Mcfe

ABP Share of MLP Debt

AMEX: ABP

ABP (Stand-Alone) Valuation

ABP Assets

Multiple Range

Valuation Range
($MM)

Valuation
Midpoint ($MM)

In-Ground Value

Proved Reserves (Bcfe):

37.7

$ 2.00 - $3.00

$ 75 - $ 113

$ 94

Undeveloped Acreage (inc. seismic):

Price Per Acre

- Mowry Shale

- Woodford Shale

- Wilcox Exploratory

46,50
0

15,00
0

2,500

$ 300 - $ 700

$ 800 - $ 1,200

$ 400 - $ 700

$ 14 – $ 33

$ 12 – $ 18

$ 1 – $ 2

$ 23

$ 15

$ 1

Price Per Unit

Abraxas MLP units (MM)

5.36

$ 16.66

$ 89

Cash and other assets (1)

$ 15

Total Value:

$ 207 – $ 270

$ 238

Less: Debt

$ 0

Total ABP Equity
Value:

$ 207 – $ 270

$ 238

Shares Outstanding
(MM)

49.0

Value Per Share

$ 4.22 - $ 5.51

$ 4.86

(1)

Cash, GWE common stock

workover rigs, vehicles, and

surface acreage / yards

AMEX: ABP

Upside Potential

Number of
potential /
identified
projects

Upside

Potential

Bcfe ⁽¹⁾

Value Matrix ($MM)

$0.50
per Mcfe

$1.00
per Mcfe

$1.50
per Mcfe

Total

559

1,256

$ 628

$ 1,256

$ 1,884

Upside Potential
Value per Share

$ 13

$ 25

$ 38

⁽¹⁾ Capital required $1.8 billion – volumes and resultant values are mid-point of range

Drill Bit Growth

targeting Conventional Reservoirs

& emerging Resource Plays

Increase Shareholder Value

through……

AMEX: ABP

Operational Goals

Reserve Ratio Improvement

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

Accretive Acquisitions

Abraxas Energy

Joint (Abraxas Energy / Abraxas Petroleum)

AMEX: ABP

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

Oates SW Field

Wellbores available for re-entry

Pecos Co.

~15,000 acres

AMEX: ABP

> 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)

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

Woodford Shale Play

AMEX: ABP

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

AMEX: ABP

Exploratory Plays

Potentially High Impact

Targeting the Wilcox Formation

Tuleta Prospect,

Bee County

Janssen Prospect,
Karnes County

(completing)

Plummer Prospect,
Bee County

(producing)

Capital Expenditure Budget:

ABP: $35 million

ABE: $20 million

$55 million

Single well impact to guidance !

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

$ 3,300 of capital expended = 1 Mcfepd for ABE properties

AMEX: ABP

2008

Niche exploration and production company

Exceptional balance sheet - no debt, cash on-hand

High quality assets with substantial upside

Control of Abraxas Energy for accretive acquisitions & future drop-downs

Goals:

Drill Bit Growth

Reserve Ratio Improvement

Accretive Acquisitions

AMEX: ABP

Summary

CONTINUE TO INCREASE SHAREHOLDER VALUE