Magnum Hunter High Bidder on 15 Central GoM Blocks

GOM Lease Sale 194/197 Shelf Blocks
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Magnum Hunter Resources was the high bidder on 15 separate lease blocks at the Central Gulf of Mexico Federal Lease Sale #194 held March 16, 2005, in New Orleans, Louisiana with working interests ranging from 40% to 100%. All of the leases to be acquired in this sale are based upon 3-D seismic interpretation. With this award, the Company will expand its Gulf of Mexico leasehold inventory to 260 separate offshore lease blocks covering approximately 1.1 million gross mineral acres. Magnum Hunter's net financial exposure, assuming all 15 lease blocks are ultimately awarded by the Minerals Management Service, is approximately $4.1 million.

Commenting on the new blocks awarded in the central Gulf of Mexico Lease Sale, Mr. Charles R. (Chuck) Erwin, Senior Vice President of Exploration for Magnum Hunter stated, "Inasmuch as it is becoming increasingly more difficult each year to find new drillable prospects on the shelf, we are very pleased with our high bid blocks from this sale. Since drilling our company's first Gulf of Mexico well in May 1999, we have participated in a total of 134 offshore wells resulting in 111 completions, for an overall success rate of 83%. Magnum Hunter currently has net production of approximately 65 million cubic feet equivalent of natural gas per day from properties located in the Gulf of Mexico, or approximately 25% of total net daily company-wide production. Magnum Hunter is in the process of adding up to 18.5 million cubic feet equivalent of new daily production from earlier discoveries in the Gulf of Mexico by the third quarter of 2005. This new production will come from a combination of successful wells drilled last year and in early 2005."


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