axas-ipaaslides.htm

Exhibit 99.1

October 6, 2008

Forward-Looking Statements

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.

Company Overview

Abraxas Petroleum Corporation

• NASDAQ: AXAS

• Market capitalization ~ $150 million

• $0 debt *

• Options: CBOE and PCX

• Russell 2000® Index

• Fully diluted shares outstanding ~ 50 million

• Ownership ~ 18% insider

~ 39% institutional

• Average trading volume ~ 400,000 shares per day

• General partner and 47% owner of Abraxas Energy Partners, L.P.

* Excluding mortgage on office building

The Market Doesn’t Understand...

We trade like we are…

• OVER-LEVERED - in fact, we’re debt-free* for the first time in 30 years

• NOT PROFITABLE - in fact, we’ve been profitable for the past 5 years

• NOT GROWING RESERVES - in fact, we’re up 8% in 2007 w/ reserve replacement of 219%

• NOT INCREASING PRODUCTION - in fact, Q2 was 49% higher than Q1

• NO PIZZAZZ - in fact, we have pizzazz - pay attention to the new AXAS …

* Excluding mortgage on office building

Compelling Story

1) Explosive Production Growth

2) Clean Balance Sheet

3) Trading Under NAV

Operating / Financial Results

(1) Based on 7 months of actual (June-December 2007) after formation of AXLP

(2) Excludes severance & ad valorem taxes of approximately 8% of oil and gas revenue

(3) Excludes extraordinary items

(4) Annualized - excludes extraordinary items and includes cash distributions from AXLP

GAAP requires
consolidated financials =
confused investors

AXAS (Stand-Alone)

7 Months
2007 (1)

Six Months
2008

% Change

Daily production (Boepd)

583

635

8.9%

% Oil

31.1%

39.5%

27.0%

LOE (2) / Boe

$ 8.35

$ 9.75

16.8%

G&A (3) / Boe

$ 13.45

$ 14.78

9.9%

D/D/A / Boe

$ 10.75

$ 13.12

22.1%

Net realized oil price

$ 74.54

$ 106.61

43.0%

Oil differential to NYMEX

($ 6.16)

($ 4.49)

(27.1%)

Net realized gas price

$ 5.70

$ 9.11

60.0%

Gas differential to NYMEX

($ 1.00)

($ 0.90)

(10.0%)

Cash flow (4) (mm)

$ 14.22

$ 20.38

43.3%

Earnings (4) (mm)

$ 10.45

$ 15.83

51.4%

High Quality Assets

Proved Reserves (MMBOE): 6.2

- Proved Developed: 34%

- Natural Gas: 63%

- Operated: 97%

Abraxas Petroleum Corporation

Proved Reserves (MMBOE): 21.7

- Proved Developed: 67%

- Natural Gas: 70%

- Operated: 70%

Abraxas Energy Partners, L.P.

Abraxas Petroleum (AXAS)

Abraxas Energy (AXLP)

AXLP & AXAS

Proved Reserves (MMBOE): 27.9

- Proved Developed: 59%

- Natural Gas: 69%

- Operated: 77%

CONSOLIDATED

Net pro forma proved reserves as of December 31, 2007

AXAS owns 47% of AXLP

Bakken

Shale Play

Haynesville

Shale Play

Central Anadarko

Woodford Shale Play

Barnett / Woodford

Shale Play

Project Inventory Matrix

> 10 year inventory of projects on existing leasehold

Capital Budget 2008

AXAS:

$ 5.6 million

AXLP:

$ 126.0 million

$ 131.6 million

AXAS:

$ 35.0 million

AXLP:

$ 20.0 million

$ 55.0 million

Recent Drilling Activity

Abraxas Petroleum (AXAS)

Abraxas Energy (AXLP)

Oil Resource Play

AXAS: Brooks Draw

46,500 gross (41,000 net) acres

10 producing wells

(5 horizontal / 5 vertical)

5 producing formations

(light gravity sweet crude)

Ш Apply Bakken horizontal
completion techniques in:

• Turner Sandstone

• Mowry Shale

Ш Received 4 drilling permits

Ш Drilling 1st well (Lakeside 1H)

23 sq. miles proprietary 3-D seismic survey

AEZ/BEXP: Krejci
Horizontal Mowry Shale

~ 15 to the SE of Brooks Draw

Converse & Niobrara Counties, Wyoming

AXAS Valuation

AXAS Assets

Multiple Range

Valuation Range
($MM)

Valuation
Midpoint ($MM)

In-Ground Value

Proved Reserves (MMBOE):

6.2

$ 15 - $ 21

$ 93 - $ 130

$ 112

Net Acres (inc. seismic):

Value Per Acre

- Mowry Shale / Turner

- Woodford Shale

- Other

41,000

15,000

2,500

$ 300 - $ 700

$ 800 - $ 1,200

$ 400 - $ 700

$ 12 - $ 29

$ 12 - $ 18

$ 1 - $ 2

$ 21

$ 15

$ 1

Value Per Unit

Abraxas MLP units (MM)

5.36

$ 16.66

$ 89

Cash and other assets (1)

$ 15

Total Value:

$ 222 - $ 283

$ 253

Less: Debt

$ 0

Total AXAS Equity Value:

$ 222 - $ 283

$ 253

Shares Outstanding (MM)

49.0

Value Per Share

$ 4.53 - $ 5.78

$ 5.16

(1) Cash, GWE common stock

workover rigs, vehicles, and

surface acreage / yards

Peer Group Valuation

AXAS

Current Market
Value per share of
AXAS

Peer Group Market
Value per share of
AXAS

AXAS Market Price per share

$ 3.00

$ 4.51

AXLP Market Value per share of AXAS (1)

($ 1.81)

Residual Market Value per share of AXAS

$ 1.19

$ 2.70

Residual Enterprise Value of AXAS

$ 58.3 mm

$ 132.8 mm

Residual Enterprise Value / Boe (2)

$ 9.40

$ 21.41

Peer Group Average (3)

$ 21.41

% AXAS Undervalued

56%

(1) Assumes $16.66 per unit - each $1.00 increase equals $0.11 per share of AXAS

(2) Net pro forma proved reserves as of December 31, 2007 of 6.2 MMBoe for AXAS stand-alone

(3) Peer group includes Brigham Exploration, Callon Petroleum, Clayton Williams, Double Eagle, Edge
Petroleum, Gasco Energy, GMX Resources, Goodrich Petroleum, Meridian Resources, NGAS Resources,
Parallel Petroleum, Petroquest Energy, TXCO Resources, and Warren Resources - data on peer group from
each Company’s 12/31/07 10-K and 06/30/08 10-Q filed with the SEC

Valuation confirmed through peer group analysis !

Show the Market…

What are we going to do…

• INCREASE ACTIVITY - 2008 capital expenditure budget = $55 million

• SIGNIFICANT PRODUCTION GROWTH

• RESERVE CONVERSION

• INCREASE VISIBILITY - conferences, road shows, analyst coverage

… and the market will understand the new AXAS

Summary

Small-cap exploration and production company

• EXPLOSIVE PRODUCTION GROWTH

• EXCEPTIONAL BALANCE SHEET

• TRADING UNDER NET ASSET VALUE

Undervalued compared to our peer group !

NASDAQ: AXAS