Magnum Hunter has drilled two dry holes thus far in the second quarter of 2003. The South Timbalier109 and West Cameron 253 prospects, 30% ownership and 40% ownership, respectively, did not find sufficient reserves to justify completion.
Commenting on the Company's recent activities in the Gulf of Mexico, Mr. Charles R. (Chuck) Erwin, Senior Vice President of Exploration for Magnum Hunter stated, "Our Company's daily oil and gas production from the Gulf of Mexico continues to increase each quarter with production now averaging 55 million cubic feet equivalent per day. Our ability to 'fast track' some of our 2003 discoveries in order that we can benefit immediately from current high commodity prices, should bode well for our second half 2003 income estimates. With drilling rig and service costs remaining at unusually low levels in relation to current commodity prices, the Gulf of Mexico will capture a minimum of $60 million or 60% of our Company's 2003 capital budget. Magnum Hunter will be participating in an additional seven wells in the Gulf of Mexico prior to year-end".
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