presentation.htm

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.

Corporate Profile

Shares outstanding(1)……....... 93.3 mm

Institutional……………….. ~59%

Insider……………………….. ~13%

Market cap(2) ……………………... $210
mm

Bank debt(1)………………………... $125
mm

PV-10(3)……………………………….. $276mm

(1) As of 6/30/12; production inclusive of Blue Eagle interest

(2) As of 9/17/12

(3) As of 6/30/12 inclusive of Blue Eagle interest and CANAXAS reserves. Uses 6/29/12 strip

(4) Based on mid year reserves and 2Q12 production annualized; inclusive of Blue Eagle

Proved Reserves(3).…………..... 30.8 mmboe

% Oil/Liquids……………… ~54%

% Proved developed….. ~49%

% Operated PV-10……… ~94%

Production(1):………………………~4,272boepd

R/P Ratio(4)…………………………. 19.8x

2012E CAPEX……………………… $70mm

NASDAQ: AXAS

Investment Thesis

Ø Exposure to “core” acreage in top U.S. oil resource plays

Ø Significant exposure to emerging NAM oil resource plays

Premier
Acreage

Value +
Growth

Ø Low decline legacy production

Ø “Manufacturing” model in repeatable resource plays leads to visible growth

Ø Recent neighboring transactions recognize significant unbooked upside

Proven
Operator

Ø Company owned rig in Bakken = pad drilling = efficiency gains

Ø Deep technical and G&G staff

Oil
Weighted

Ø 52% crude oil and liquids weighted(1)

Ø Percentage likely to grow meaningfully given capital focus

(1) As of 06/30/12; production inclusive of Blue Eagle interest

Business Plan - 2012 & Beyond

§ FOCUS + DELEVER + GROW

§ ReFOCUS Portfolio and CAPEX on Highest Returning Basins

§ Currently: Williston, Eagleford, PRB, Permian

§ DELEVER: Actively Pursue Divestitures

§ Properties trading above internal assessment of fair value

§ Lack of scale/high margin production

§ Reduce leverage and maintain that profile

§ Target Debt/EBITDA < 2.0x by YE13

§ GROW: The Outcome of Sound Investment Decisions

§ Bakken/TFS:

§ Accelerate with company owned drilling rig

§ Eagleford:

§ Mobilize rig to commence 10 well program

Low Risk Development

Focus On Four Core Positions in Premier Oil Resource Plays Predominately HBP

§ Williston: 20,000+ net acres; Bakken, Three Forks

§ Eagleford: 8,000+ net acres: Eagleford, Buda

§ PRB: 17,000+ net acres; stacked potential

§ Permian: 40,000+ net acres: conventional & stacked pay opportunities

Premier Positions in Emerging Oil Resource Plays

§ Permian: 40,000+ net acres; exposure to numerous emerging plays

§ Canada: 20,000+ net acres; stealth oil play

§ Alberta Basin: 10,000+ net acres

Low Risk Conventional Development

§ Williston Basin: Red River/Duprow

§ Permian Basin: Spires Ranch - hz Strawn

§ Permian Basin: Delaware Basin - dry gas

Proved Reserves (MMBoe)(1): 30.8

• Proved Developed: 49%

• Liquids: 54%

• Operated (by PV10): 94%

Abraxas Petroleum Corporation

Williston:

Bakken / Three Forks

Permian Basin: Midland/Eastern Shelf

Emerging Cline, Wolfcamp

Permian Basin: Conventional

Rocky Mountain

Mid-Continent

Permian Basin

Gulf Coast

Eagleford Shale

High Quality Assets

Alberta

PRB:

Niobrara, Turner

Alberta Basin:

Bakken

Alberta

Permian Basin: Delaware

Emerging Bone Spring, Wolfcamp

(1) Net proved reserves as of June 30, 2012, including AXAS’ share of

Blue Eagle’s proved reserves per the September 2012 dissolution

Reserve / Production Summary

Proved Reserves(1) - 30.8 MMBoe

Production(2) - 4,272 Boepd

(1) Net proved reserves as of June 30, 2012, including AXAS’ share of Blue Eagle’s proved reserves per the September 2012 dissolution and Ward County acquisition

(2) Daily net production for the quarter ended June 30, 2012, including AXAS’ share of Blue Eagle’s production

AXAS Production

(1) Includes AXAS’ share of Blue Eagle’s production (50% in Q1 and Q2 2011, 41% in Q3 2011 and 35% in Q4 2011, Q1 2012 and Q2 2012)

Oil/NGL % 34% 35% 36% 39% 42% 49% 47% 45% 52% 52%

Production Net to AXAS(1)

2012 Capital Budget

§ Large inventory of drilling locations in unconventional and conventional oil plays

§ Additional inventory of gas projects await higher gas prices (all HBP)

(1) Unrisked locations based on eight wells (four Bakken and four Three Forks) per 1,280 acre units; 160 acre spacing assumptions in the Eagle Ford Shale; 3-D identified locations in the
Niobrara Shale play;

(2) Inclusive of 298 net acre pending acquisition at WyCross

Project Area	Net Acres	Net Unrisked Locations(1)	2012 Drilling Program		2012 Net Capital ($MM)
			Gross	Net
Bakken / Three Forks	20,835	130	29.0	4.8	$34.0
Eagle Ford Shale (2)	8,238	51	3.0	0.75	$6.1
PRB	17,800	54	1.0	1.0	$9.0
Permian Basin	41,131	NA	3.0	3.0	$6.3
Pekisko Fairway	5,760	6	1.0	1.0	$8.9
Alberta Bakken	10,000	-	-	-	-
Other	20,000+	-	-	-	$5.8
Total:	123,764+	241+	37.0	10.6	$70.1

Bakken / Three Forks

Montana North Dakota

Elkhorn Ranch / Lewis & Clark

2,035 net acres

Mon Dak / Rough Rider

7,010 net acres

Carter

3,200 net acres

Sheridan

2,340 net acres

§ 109,658 Gross/20,835 Net Acres:

§ ~100% held by production

§ Drilling Inventory:

§ 1,280 acre units

§ ~685 gross / 130 net

§ 4 Bakken / 4 Three Forks wells

§ $34.0 MM budget

§ Operated

§ Pad-drilling

§ Company owned rig

§ 7 gross (2.74 net)

§ Non-operated wells

§ 2012 to-date

§ 22 gross (2.03 net)

Stenehjem 27-34 1H - Bakken

North Fork / Nesson

3,540 net acres

Ravin 26-35 1H - TFS

Elm Coulee

440 net acres

Nesson

2,270 net acres

Recent QEP/Helis Transaction

§ Approximately 5 Miles East of North Fork

§ Transaction metrics

§ $1.38 bn for 27.6k net acres

§ 10,500 boepd

§ @ $80k/mboepd = $19,600/acre

§ Assumed EUR: 1mmboe

§ Abraxas North Fork

§ 3,540 net acres

§ 1,280 acre units: 8 B/TF wells

§ Locations: 64 gross (19.7 net)

§ Drilled: 4 gross (1.5 net)

§ Remaining: 60 gross (18.2 net)

§ Assumed EUR: ~500mboe

Bakken / Three Forks

Recent Operated Activity:

§ Ravin 26-35 1H:

§ Cum. production (20 months)

§ 117 MBoe

§ 85% Oil / NGLs

§Stenehjem 27-34 1H:

§ Cum. production (12 months)

§ 111 MBoe

§ 83% Oil / NGLs

§Ravin 26-35 2H:

§ Drilled - Waiting on completion

§Ravin 26-35 3H:

§ Drilled - Waiting on completion

§Jore Federal 2-11 3H:

§ Drilling lateral

§Completion Date Scheduled: 10/15/12

North Fork / Nesson

3,540 net acres

2% WI

25% WI

6% WI

76% WI

30% WI

Johnson (B)

AXAS operated wells

Three Forks Bakken Existing

AXAS non-operated wells location location well

(Bakken or TF)

Stenehjem (B)

7% WI

50% WI

Ravin (TF)

79% WI

Wiley (B/TF)

Bailey (B/TF)

Lundin (TF)

28% WI

<1% WI

Koeser (B)

Ravin 2H & 3H (B)

Drilled

Lillibridge 1,2,3,4H
Next Pad

Jore Fed 3H

Currently Drilling

Bakken / Three Forks

Significant Long Term Investments:

§Raven Drilling:

§ 2000 HP walking rig

§ Dedicated AXAS crew

§ Company owned man camp

§ Allows for significant efficiency gains

§North Fork Water System

§ Will service all North Fork wells

§ Enables AXAS to achieve cost savings via
centrally located frac pond

Eagleford Shale

§ Blue Eagle Joint Venture:

§ Dissolved as of September 1, 2012

§ WyCross McMullen County:

§ ~25% working interest

§ 6,139 gross / 999 net(1)

§ Eagleford: Volatile Oil

§ Nordheim (Sugarkane): DeWitt County

§ 18.6-25% working interest

§ 3,982 Gross / 932 net acres

§ Eagleford: Condensate

§ Jourdantan: Atascosa County

§ 100% working interest

§ ~4,467 gross / 4,399 net

§ Eagleford/Buda: Oil

§ Yoakum: DeWitt county

§ 100% working interest

§ 2,097 gross / 1,908 net

§ Eagleford: Dry Gas

§ Planned Activity:

§ 10 well program

§ Rig identified

§ Economics:

§ EUR 500mmboe

§ T-Bird cum. (19 Mos): 426mboe

§ $8.1mm D&C

(1) 298 acres pending acquisition

Eagleford Shale - Core Area

WyCross

§Core of the volatile oil window

§Locations (assuming 80s)

§ 77 Gross / 19 net

§Cobra 1H

§ Cum. production (6 months): 109.7 MBoe

§ 93% Oil / NGLs

§Cobra B 1H

§ Spud October 2012

Nordheim

§Abuts Sugarkane

§Locations (assuming 80s)

§ 50 Gross / 12.5 net

§T Bird 1H

§ Cum. production (19 months): 426 MBoe

§ 50% Oil / NGLs

Campbell

Converse

Niobrara

PRB

Converse / Niobrara Counties, Wyoming

§ Gross / Net Acres:

§ 20,720 / 17,800

§ Primarily in Converse and Niobrara
Counties

§ ~2,100 net acres in Campbell County

§ ~90% held by production

§ Drilling Inventory:

§ 54 net locations (3-D identified)

§ Historical Activity:

§ 13 wells (2000 - 2011)

(8 horizontal / 5 vertical)

§ Recent Activity:

§ Hedgehog State 16-2H (Crossbow)

§ Restricted rate - 400 Boepd

§ > $5.00 per Mcf w/ NGLs

§ 100% working interest

§ Cum (4 months): 60 MBoe

§ 51% Oil / NGLs

Recent Industry Activity:

74 Permits

8 Completions

AXAS Activity:

Hedgehog State 16-2H

(Turner)

Recent Industry Activity:

26 Permits

1 Completion

AXAS Activity:

Sage Grouse 3H:

(Cum Oil 25 MBbl / 50 MBbl EUR)

Prairie Falcon 3H (Niobrara)

Recent Industry Activity:

115 Permits

14 Completions

Permian Basin - Ward County Acq.

§ Purchase Price… $6.7mm(1)

§ PDP PV -15……… $6.7mm(2)

§ Assumes 5/1/12 Strip

§ 5/1/12 2012 Strip = $2.29

§ Production……... 1,440 mcfepd

§ Reserves……....... 7.613 bcfe

§ Transaction Metrics

§ Production: $4,650/mcfe/day

§ Reserves: $.88/mcfe

§ Upside Potential

§ Producing into low pressure line

§ Emerging Horizontal Plays

§ Previously > 20 bcfe booked PUD reserves
(net to Abraxas’ interest)

(1) Net of purchase price adjustments

(2) PV10 calculated using strip pricing as of 5/1/12

Permian Basin - Spires Ranch

§ 5,600 Gross/Net Acres

§ 2012 Activity:

§ 3 gross / net wells

§ Current Activity:

§ Spires 89-1H

§ Completing

§ Economics:

§ D&C Cost: $1.8 MM

§ EUR: 145 MBoe

§ 54% Oil / NGLs

AXAS owns 100% working interest in Spires Ranch leasehold

5,600 net acres

Nolan
County

Spires 89-1H

Permian Basin - Emerging Hz

Spires Ranch (Nolan County)

§Monitoring industry activity

§Geologic evaluation

§Logged shales through Spires 89 1H

Millican Reef (Coke County)

§Monitoring industry activity

§Geologic evaluation

Permian Basin- Wolfbone

§ April 2011 TX GLO Lease Sale:

§ $5,295 / acre -

offsetting AXAS

§ Offsetting Industry Activity:

§ 3 CWEI-CHK wells -

offsetting AXAS

§ Current Activity:

§ Geological evaluation

§ Monitor industry activity

AXAS’ leasehold at Nine Mile Draw (80-100% WI)

Fusselman producers - AXAS operated

Reeves
County

2,886 net acres

Canada - Pekisko + Stealth Play

§ Pekisko Gross / Net Acres:

§ 5,760 (100% WI)

§ Pekisko Economics:

§ D&C Cost: $3.5 MM

§ EUR: 150 MBoe

§ Pekisko Activity:

§ 6 wells on production

§ Planned Activity:

§ Continue to expand acreage position in
emerging shale play in central Alberta

§ Post accumulation, actively market for
JV/sale as a commingled package

Tomahawk

Twining

Pekisko Trend

Alberta, Canada

Stealth Oil Play

Recently Drilled
Neighboring Well in
Stealth Oil Play

	2012	2013	2014
OIL - weighted average price	$76.00	$86.70	$94.05
% of 2Q Production	~71%	~76%	~51%