Cimarex Energy Announces Year-End Reserves

Cimarex Energy reported year-end 2005 proved reserves of 1.393 trillion cubic feet equivalent (Tcfe), a 210 percent increase over year-end 2004. Proved reserves are 72 percent gas and 81 percent proved developed. Excluded from year-end 2005 reserves are 35.0 billion cubic feet equivalent (Bcfe) classified as equity investments and 62.5 Bcfe associated with divestitures.

Reserves added from the Magnum Hunter Resources, Inc. acquisition and other transactions totaled 887.6 Bcfe. Reserves added by drilling and revisions totaled 247.8 Bcfe and replaced 192 percent of production.

                                                 December 31, 2005
                                          Gas           Oil          Total
                                         (MMcf)        (MBbl)       (MMcfe)
    Total proved reserves
    Beginning of year                    364,641       14,063       449,019
      Revisions of previous estimates      9,534          270        11,154
      Extensions and discoveries         209,758        4,477       236,620
      Purchase of reserves               531,862       59,288       887,590
      Production                        (100,272)      (4,804)     (129,096)
      Sales of properties                (11,041)      (8,584)      (62,545)
    End of year                        1,004,482       64,710     1,392,742

    Proved developed reserves            820,244       51,521     1,129,370
    Equity investment proved
     reserves not included above(1)       16,914        3,012        34,986

    Costs incurred - 2005 ($ MM)
    Acquisition of Magnum Hunter
     and other properties                                            $1,862
    Exploration and development                                         601
    Total oil and gas expenditures                                   $2,463

    (1)  The Financial Accounting Standards Board (FASB) pronouncement EITF
         No. 04-5 "Determining Whether a General Partner, or the General
         Partners as a Group, Controls a Limited Partnership or Similar
         Entity When the Limited Partners Have Certain Rights" was effective
         in June 2005.  This pronouncement resulted in certain entities
         acquired as part of the Magnum Hunter merger not being consolidated.

    Exploration and Development Activity

Cimarex drilled 382 gross (210.4 net) wells during 2005, realizing a success rate of 88 percent. Exploration and development (E&D) capital expenditures for 2005 totaled $601 million, up 115 percent over 2004. At the present time we have 35 rigs under contract and expect 2006 E&D expenditures will approximate $1 billion.


Cimarex drilled 185 gross (93.4 net) wells in the Mid-Continent region during 2005 realizing a 96 percent success rate. The drilling principally occurred in the Texas Panhandle and the Anadarko Basin. In the Texas Panhandle Granite Wash formation, Cimarex drilled 36 gross (27.5 net) wells with a 100 percent success rate. Gross proved reserves for these wells averaged 1.0 Bcfe per well. Four operated rigs are currently drilling in the Granite Wash play, six are in the Anadarko Basin and two others are in southern Oklahoma.

Permian Basin

In the Permian Basin, Cimarex drilled 117 gross (75.0 net) wells during 2005 and had an 87 percent success rate. The majority of the drilling occurred in southeast New Mexico where 74 gross (45.7 net) wells were drilled with a 95 percent success rate in the Morrow, Atoka and Strawn formations. Gross proved reserves averaged 1.3 Bcfe per well. In the west Texas portion of the Permian, Cimarex drilled 43 gross (29.3 net) wells including: thirteen Devonian wells in the Arbol de Nada field, of Winkler County and two Elleburger/Wolf Camp wells in Val Verde County's Will-O field. Cimarex currently has eight operated rigs drilling in southeast New Mexico and three in Texas.

Gulf Coast

Cimarex drilled 44 gross (27.7 net) Gulf Coast area wells during 2005, realizing a 66 percent success rate. The majority of the drilling occurred in Liberty County, Texas; southern Louisiana; south Texas; and Mississippi. The Liberty County program targets the Yegua and Cook Mountain formations at 10,500 feet. In 2005, Cimarex drilled 14 gross (9.3 net) wells in this project realizing a 50 percent success rate. As a result of successful drilling, Liberty County gross production increased to 72 MMcfe per day in 2005, an 80 percent increase over 2004.

In the fourth quarter of 2005, Cimarex drilled a discovery in Vermilion Parish, Louisiana. The Donald Harrington #1 (100% working interest) at the Cherokee Creek prospect was drilled to a total depth of 16,200 feet and was perforated in a 90 foot gross interval in the Marg tex formation. First production occurred in mid-January 2006 at a rate of 26 million cubic feet of gas and 150 barrels of condensate.

Cimarex plans to have two or three rigs operating continuously throughout 2006 in south Louisiana and two in Liberty County.

Gulf of Mexico

Including wells drilled by Magnum Hunter prior to closing, Cimarex drilled or participated in 31 gross (10.9 net) wells in the Gulf of Mexico during 2005. Of these, 82 percent were completed as producers. Ten operated wells were drilled, mostly in the Main Pass and West Cameron areas, and we participated as a non-operator in 21 wells. The non-operated wells were drilled in the East Cameron, West Cameron and South Timbalier areas. Of the 31 gross wells, five were initiated and completed by Cimarex since the June 7, 2005 closing of the Magnum Hunter merger.

Cimarex drilled the West Cameron Block 295 #3 (30% working interest) in the fourth quarter of 2005. The #3 well was drilled to a depth of 16,286 feet and logged 110 feet of net (94 feet true vertical depth) pay in two zones. Production is expected to commence during May 2006 at a rate of approximately 10 MMcf per day.

Hurricane and other storm related activity is estimated to have negatively impacted production by 41-45 MMcfe/d in the fourth quarter. At December 31, 2005 the amount of production curtailed because of the hurricanes was approximately 20-25 MMcfe/d, the majority of which is expected to be restored by the end of the first quarter 2006.

At the present time, Cimarex has two rigs working on company-operated wells, one in Federal waters and one in state waters offshore Louisiana.