Abraxas Petroleum Corporation Announces Results of Exchange Offer

Business Wire, Dec 17, 1999

SAN ANTONIO--(BUSINESS WIRE)--Dec. 17, 1999--

Abraxas Petroleum Corporation (OTC BB:AXAS) announced today that its offer to exchange a new issuance of $196.8 million of its 11 1/2% Senior Secured Notes due 2004, shares of Abraxas common stock and contingent value rights for $274.0 million of its outstanding 11 1/2% Senior Notes due 2004 had expired and that holders owning 98.43% of the principal amount of its outstanding Senior Notes had accepted the exchange offer.

For each $1,000 principal amount of notes tendered, the Company will pay the following consideration:

--   a new note with a principal amount equal to $700

--   approximately 59.6184 shares of Abraxas common stock

--   approximately 59.6184 contingent value rights, each of which may
     result in the distribution of up to approximately 6.3889 shares
     of Abraxas common stock

In connection with the exchange, the indenture relating to the 11 1/2% Senior Notes due 2004 will be amended to eliminate most of the restrictive covenants and certain events of default.

Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploration and production company that also processes natural gas. It operates primarily along the Texas Gulf Coast, in the Permian Basin of western Texas, western Canada and southwestern Wyoming.

Requests for additional information should be directed to Chris E. Williford, executive vice president of Abraxas Petroleum Corporation at 210/490-4788 or cwilliford@abraxaspetroleum.com.