Magnum Hunter Completes Early Redemption of Senior Notes

Magnum Hunter Resources reports that pursuant to the Indenture dated March 15, 2002, between Magnum Hunter, the Subsidiary Guarantors named therein, and Bankers Trust Company, as Trustee, (the "Indenture"), it has redeemed $105 million in aggregate principal amount of its outstanding 9.6% Senior Notes due 2012 (CUSIP No. 55972 FAD6) (the "Redeemed Notes").

As of the close of business at 5:00 p.m., Eastern time on August 27, 2004 (the "Redemption Date"), the Company paid to the Holders of the Redeemed Notes the redemption price of 109.6% of the $105 million aggregate principal amount of the Notes, or $115.08 million plus accrued and unpaid interest through the Redemption Date of approximately $4.5 million. The $10 million premium paid for the early redemption of the bonds will result in a one-time charge to earnings in the third quarter of 2004. The redemption amount was funded with a portion of the proceeds from the Company's recent issuance of 17.25 million shares of common stock.