Abraxas Provides Operational Update - Seite 2

Our company owned Raven Rig #1 is currently drilling our four well Lillibridge Northwest Pad in which Abraxas owns an approximate 25 percent working interest. These wells, as well as five additional wells planned to be drilled from our Jore Federal Extension Pad over the winter, will remain as DUCs until next summer’s frac season.

During September and early October, another operator conducting frac operations on six wells offsetting our Stenehjem Super Pad and Stenehjem East Pad to the north necessitated the shut in of 17 high volume wells for a various number of days for frac protection. All wells have currently been placed back on production with no negative effects from the offset fracs. In addition, due to our own fracs on the Ravin Pads, an additional 12 wells were shut in for frac protection. In September, we calculate we lost 1016 barrels of net oil equivalent per day (boepd), or a total of 30,489 boe for the month. Up through October 20, we calculate we have lost 716 boepd or 14,315 net boe for the month.

Due to industry success, gas production in North Dakota now exceeds gathering and processing capacity of our third-party processor. Additional infrastructure is under construction but in the interim increasing amounts of gas will have to be flared. During September our flared volumes totaled 688 barrels of oil equivalent per day which includes gas flared in West Texas or 20,627 barrels of oil equivalent for the month. For October up through October 20 our flared volumes in both areas totaled 14,399 barrels of oil equivalent or 720 barrels of oil equivalent per day (boepd).

The frac protect and flared gas losses are mentioned to clarify any confusion between well head volumes as shown on our actual production versus our type curve charts and reported production which is actual sales excluding flared volumes. Investors are encouraged to view these graphs which can been found in our current corporate presentation on our web site, www.abraxaspetroleum.com. They clearly show our actual wellhead production continues to exceed our stated type curves even though reported production was impacted by issues beyond our control. We will continue to actively monitor the natural gas takeaway and capacity situation in West Texas and North Dakota and use our observations to guide our 2019 drilling and completion plans.