Magnum Hunter Makes New Strawn Reef Discovery

Magnum Hunter Resources is continuing to expand its successful exploration and development drilling activities onshore within the Morrow formation natural gas play located primarily in Southeastern New Mexico. Additionally, the Company is announcing a significant new Strawn reef discovery in this region.

Since initiation in April 2002 of a new drilling program targeting the Morrow formation in Eddy and Lea Counties, New Mexico, Magnum Hunter has successfully drilled 22 new wells. Of these new wells drilled, 15 have been completed to-date and are currently producing with average initial gross production per well of 2.5 million cubic feet equivalent ("Mcfe") per day. Results to-date indicate overall finding and development costs for Magnum Hunter of less than $1.00 per Mcfe in this program.

While drilling for the Morrow in Eddy County, New Mexico, the Company recently encountered a Strawn reef interval in a 50% working interest owned well. Three separate intervals of the Strawn reef covering a total of 339 feet have now been tested with the production results as follows:

1 360 970
2 685 2,220
3 790 2,500
TOTAL 1,835 5,670
The Company plans to have all intervals commingled and on production today with an estimated combined gross production of 750 -- 1,000 barrels of oil and 2.2 -- 3.0 Mmcf of natural gas per day. Gruy Petroleum Management Co., a wholly-owned subsidiary of Magnum Hunter, is the operator and has filed with the U. S. Department of the Interior, Bureau of Land Management, to drill another Strawn reef well sometime next month.

Magnum Hunter presently has seven new natural gas wells in various stages of completion procedures and continues to keep two drilling rigs active in this region. The Company has been successful in expanding its mineral acreage position in this area by acquiring the ownership interests of several smaller independent oil and gas companies and individuals who have historically been active in this region. Magnum Hunter is also in the process of completing negotiations of farm-ins with several larger oil and gas companies that would increase the Company's existing gross mineral acreage position by approximately 55,000 acres.