Abraxas Petroleum Corporation says that Abraxas Energy Partners, L.P. has finalized agreements with its lenders to amend the terms of its senior credit agreement and its subordinated credit agreement, and to affirm its borrowing base.

Herein, we refer to Abraxas Petroleum Corporation and its subsidiaries as "Abraxas Petroleum" and Abraxas Energy Partners, L.P. and its subsidiaries as "Abraxas Energy" or the "Partnership." Abraxas Petroleum owns a 47% interest in the Partnership.

The Partnership's senior credit agreement consists of a $300 million revolving credit facility with a borrowing base determined by its lenders on a semi-annual basis. On January 16, 2009, the lenders affirmed the borrowing base of $140 million, of which $125.6 million is currently outstanding. The Partnership's $40 million subordinated credit agreement was amended to extend its maturity date from January 31, 2009 to July 1, 2009.

"We are fortunate to have a bank group, which is led by Societe Generale, that can meet the needs of its clients during times of unprecedented turmoil and uncertainty in the global debt and equity markets," commented Barbara Stuckey, Abraxas Energy's President.

The amended agreements will be filed with the Securities and Exchange Commission on January 20, 2009.

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