Abraxas Provides 4Q12 and Year-End Production and Reserve Data; Operational Update

Abraxas provides 4Q12 and year-end production and reserve data; operational update

Williston Basin
Drilling continues on the Company’s Lillibridge East PAD with intermediate casing set on the 1H, 2H, 3H and 4H. The Company is currently preparing to drill the lateral on the 4H after which the rig will move to drill the laterals of the 3H, 2H and 1H. Abraxas owns an approximately 34% working interest in the Lillibridge East PAD. The Company recently completed the Ravin 3H and is currently finishing the fracture stimulation of the Ravin 2H. Flowback is expected to commence within the next few days from both wells. Abraxas owns a 49% working interest in both the Ravin 2H and 3H.

Non-Operated Bakken/Three Forks Sale Process
Abraxas recently retained E-Spectrum Advisors (formerly Energy Spectrum Advisors) to market its non-operated Bakken and Three Forks assets in North Dakota and Montana. The potential divestiture consists of approximately 435 boepd and 14,502 net acres. If the Company is successful in achieving an acceptable price for these assets, the proceeds will be used to pay down the Company’s revolver and redeployed into its core operated Bakken and Eagle Ford assets.