Magnum Hunter Says Only Minor Damage from Hurricane Ivan

Magnum Hunter Resources says its properties located in the Main Pass and West Cameron areas suffered minor damages. High winds and wave action damaged walkways, handrails, helipads, and control lines. While the eye of the hurricane came within 35 miles of Company operated platforms, there appears to be no permanent damage to these properties. The Company estimates total capital outlays for repairs will amount to less than $500,000, which should be less than the Company's current insurance deductible of a similar amount.

Management estimates production losses in the 23.3 Mmcfe per day range for the month of September 2004 and 10.0 Mmcfe per day for the month of October 2004, before production on all wells is restored to pre-storm levels. These storm related production losses represent approximately 31% of the Company's September 2004 estimated Gulf of Mexico production levels, and 13% of the Company's October 2004 Gulf of Mexico production levels. Company-wide, third quarter 2004 total production levels will be approximately 5% less than previously estimated due to Hurricane Ivan storm related incidents that have affected operations. While most production should be restored within the next ten days, all presently shut-in production is anticipated to be back on line by mid-October.