Mission Resources Makes New Gas Discovery

Mission Resources reports that the #1 Barry well in DeWitt County, Texas, has been completed and tested at a gross rate of 10.7 million cubic feet of gas per day (MMcf/d). Gas production from the well is expected to commence mid-May 2004 at an initial gross rate of approximately 13 to 15 MMcf/d. Additional pay zones will be completed after depletion of the existing zones. Mission Resources holds a 25% working interest in the #1 Barry well and on its proportionate share of 1,776 net acres on the prospect. Several offset locations are being reviewed for further development in the near future.

Mission has also successfully recompleted the High Island Block A-553 #A-7 well, located offshore Texas in federal waters. The well is expected to reach a combined gross production rate of approximately 15 to 18 million cubic feet of gas equivalent. Mission holds a 36.6% working interest in High Island Block A-553 and operates the property. Additional recompletion and drilling opportunities exist on this block.

"We are pleased with the results of these two wells and continue on track for our production guidance for 2004," commented Robert L. Cavnar, Chairman, President and Chief Executive Officer. "With the success of these two wells, our production mix is now over 60% natural gas, which brings us closer to our target of 70% natural gas."