Energize 2007 New Year, New Realities January 8-12 San Francisco

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1 Energize 007 New Year, New Realities January 8- San Francisco The information presented herein may contain predictions, estimates and other forward-looking statements within the meaning of Section A of the Securities Act of 9 and Section E of the Securities Exchange Act of 9. 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.

2 Abraxas Abraxas Petroleum Corporation AMEX:ABP Market capitalization ~ $ million Enterprise value ~ $0 million Options: CBOE and PCX Fully diluted shares outstanding ~. million Ownership: ~ % insider ~ % institutional Average trading volume ( mos): ~ 00,000 shares per day

3 Why Abraxas Natural gas (> 80%) Operations in Texas and Wyoming > 0 year inventory of projects on existing leasehold Proved RLI: > 7 years Quality assets High ownership interest (79% WI) Operational control (9%) High producing rates per well Large acreage positions Substantial upside 0 Long-Term Debt ($MM) 0 Market Cap ($MM) 0 Prov ed Reserv es (Bcfe) YE

4 Goals Increase Shareholder Value by Drill Bit Growth targeting Conventional Reservoirs & watching Resource Plays

5 00% through the drill bit Growth.0 CAGR % 0.0 MMcfepd Q 00 Q 00 Q 00 Q 00 Q 00 Q 00 Q 00 South Texas West Texas Wyoming

6 Areas of Operations WYOMING Powder River Basin Converse & Niobrara Counties WEST TEXAS Delaware Basin Pecos, Reeves & Ward Counties Eastern Shelf Coke, Dawson, Howard, Martin, Mitchell & Scurry Counties SOUTH TEXAS Gulf Coast Basin DeWitt, Goliad, Lavaca & San Patricio Counties

7 Production / Reserves Proved Reserves 0.7 Bcfe Net Production. MMcfepd Wyoming % P Reserves. Bcfe South Texas % South Texas % Wyoming % West Texas 7% West Texas 8% 7 as of //0 Q actual

8 Acreage / Projects Net Undeveloped Acres ~,00 West Texas % 7 P Projects Incremental Projects Wyoming 7% South Texas % South Texas 8% Wyoming 9% West Texas 7% 8 as of //0, includes mineral interest as of //0

9 West Texas wells (7% WI) 7.0 Bcfe (Proved). Bcfe (P). MMcfepd 7,00 NUA 7 projects (P) 7 incremental projects Average depth: >, Plans Oates SW: Devonian Woodford In-fill drilling programs at: Cherry Canyon Spraberry Clearfork Strawn Reef PROJECT AREAS: San Antonio IRA Clearfork / Strawn Reef 9 as of //0 Q actual as of //0, includes mineral interest Delaware Atoka-Wolfcamp / Mississippian / Devonian / Montoya / Ellenburger Cherry Canyon Cherry & Bell Canyon Oates SW Wolfcamp / Woodford / Devonian

10 Oates SW Manzanita: Q 07 Devonian horizontal re-entry 8 sq. miles -D Seismic Hudgins 7-H: Devonian On-line needs fracture stimulation Hudgins -: Woodford Producing small amount of dry gas ~,000 acres Focus Conventional Reservoir DEVONIAN wells producing - awaiting completion Q 007 drill horizontal re-entry Hudgins -H: Devonian <.0 MMcfepd Secondary Resource Play WOODFORD 0 La Escalera -: Lower Wolfcamp Not commercial Elsinore Cattle : Devonian ~ 0. MMcfepd La Escalera AH: Devonian < 7.0 MMcfepd Wellbores available for re-entry Woodford - well producing

11 Resource Play Delaware Basin Shale Players: ABP, COP, CHK, CRZO, CWEI, DVN, ECA, EOG, FST, KWK, PPP, RRC, SWN, XTO, Reliance and Petro-Hunt EOG (building pipeline after positive test) COP (flowing gas) Culberson Reeves Ward ABP: ROC Complex,0 net acres HBP Conventional Reservoirs ABP: Nine Mile Draw Field,0 net acres HBP Pecos ABP: Oates SW Field ~,000 acres (gained valuable reservoir knowledge & producing small amount of dry gas) Petro-Hunt (flowing gas)

12 Pecos County Pecos County Players: ABP, CHK, PXD, Reliance and Petro-Hunt (P-H) Reliance / CHK / PXD -D seismic & data swap PXD ( drilling & permitted) Pecos ABP: Oates SW Field ~,000 acres (gained valuable reservoir knowledge & producing small amount of dry gas) P-H ( permitted & flowing gas) CHK 0% / P-H 0% ~00,000 acres -D seismic swap

13 Resource Play Comparison Delaware Basin Shale Players: ABP, COP, CHK, CRZO, CWEI, DVN, ECA, EOG, FST, KWK, PPP, RRC, SWN, XTO, Reliance and Petro-Hunt Barnett Shale Players: BEXP, COP, CHK, CRZO,DNR, DVN, ECA, EOG, IFNY, KWK, PLLL, RRC, XTO Delaware Basin Shale (Barnett / Woodford) Mississippian / Devonian ,000,000 Barnett: 00,000 Woodford: ,000? (+) Geologic age Total organic content (%) Thermal maturity (Ro) Depth (feet) Thickness (feet) Gas-in-place (Bcf / 0 acres) Recovery factor (%) Average well cost ($MM) Ft. Worth Barnett Shale Mississippian ~. 0..9,00 8,00 0, (+) Sources: Natexis Bleichroeder Inc. CHK estimates ABP estimates Pickering Energy Partners

14 South Texas wells (9% WI). Bcfe (Proved) 9. Bcfe (P) 7. MMcfepd,00 NUA projects (P) incremental projects Average depth: >,000 San Antonio PROJECT AREAS: Edwards Edwards / Wilcox as of //0 Q actual Portilla Frio / Vicksburg 007 Plans Several exploratory wells targeting the Wilcox formation Continual maintenance of Portilla to keep production flat Wilcox Wilcox / Reklaw / Mackhank

15 Wyoming 0 wells (00% WI). Bcfe (Proved) 9.9 Bcfe (P) 0. MMcfepd >0,000 Acres projects (P) 0 incremental projects Average depth: 9,000 PROJECT AREA: Brooks Draw Teapot / Niobrara / Turner / Mowry / Muddy as of //0 Q actual Gross acres (>9% MI), >,000 HBP

16 PETRA //00 9:: AM BRIGHAM OIL & GAS LP No. NEW CLEAR CREEK FED 9,00 79 BRIGHAM OIL & GAS LP No. - MILL TRUST FEDERAL 8,9 0 BRIGHAM OIL & GAS LP No. - KREJCI FEDERAL 7,00 Mowry Oil Shale Play ABP: Brooks Draw 0 wells ( horizontal / vertical) Converse & Niobrara Counties, Wyoming vertical wells producing from Mowry (commingled with other zones) 0 7 0N 9W N 8W N 7W N W N W T0N-RW T0N-RW Plans Accelerate? Full-scale technical evaluation of our acreage 0 7 9N 9W N 8W N 7W N W N W T9N-RW T9N-RW N 9W N 8W N 7W N W N W T8N-RW T8N-RW N 9W N 8W N 7W N W N W 0 7 T7N-RW T7N-RW N 9W N 8W N 7W N W N W TN-RW TN-RW AEZ/BEXP Horizontal Mowry Shale ~ to the SE of Brooks Draw 0 0,000 FEET st well: ~0 BOPD nd well: drilling horizontal lateral

17 Increase Shareholder Value... Continue to improve balance sheet Maintain financial flexibility and liquidity Prioritize large opportunity set of projects ABP Share Price NYMEX Gas $.00 7 Jan-0 Feb-0 Mar-0 May-0 Jun-0 Aug-0 Sep-0 Nov-0 Dec-0 Jan-0 Mar-0 Apr-0 Jun-0 Jul-0 Sep-0 Oct-0 Nov-0 $.00 $9.00 $.00 $.00 $-

18 ABP Undervalued compared to NAV $ NAV / share $ $ $9 $ $ Sky s the Limit $8- P $-7 P $- Proved?? Bcfe incremental (highest risk) 7 Bcfe possible (higher risk) ( Bcfe P reserves) Bcfe probable (low-risk) ( Bcfe P reserves) 0 Bcfe proved SIGNIFICANT UN-BOOKED POTENTIAL as of //0 PV0 ranges from.% discount to.% increase to //0 SEC PV0

19 00 CapEx Budget & Guidance Production Annual (Bcfe) Exit Rate (MMcfe/d) 0 - Price Differentials off NYMEX Gas (%/Mcf) % Oil ($/Bbl).00 Production Taxes (% of Revenue) 0% Direct Lease Operating Expenses ($/Mcfe).0 G&A ($/Mcfe) 0. Interest ($/Mcfe).00 D/D/A ($/Mcfe).80 Capital Expenditure Budget ($MM) 0.0* 9 * or x cash flow, whichever is lower Guidance does not include non-cash and extraordinary items Hedge position: 0,000 MMbtu per day through July 007 with $.-$.0 floor

20 007 CapEx Budget & Guidance Capital Expenditure Budget ($MM) - 0

21 Summary Niche exploitation and production company High quality assets with substantial upside Goals: Increase Shareholder Value Drill Bit Growth

22 Hudgins Ranch, Delaware Basin, West Texas