St. Mary Land & Exploration Ups Oil, Gas Production Guidance

St. Mary Land & Exploration Company reported that the increase in oil and gas production guidance for the full year is due to the planned increase in capital investment in the horizontal Woodford shale program, the previously announced bolt-on acquisitions in the Carthage Field in East Texas, and increased production from recently completed wells on our fee lands in South Louisiana and offshore Gulf Coast. Offsetting these increases to the production forecast are reductions totaling approximately 1.0 BCFE related to minor divestitures in the Rocky Mountain and Gulf Coast regions that will impact the remainder of 2008.

There are no presumed production volumes from future acquisitions included in the guidance above.

In the Woodford Shale, St. Mary continues to see positive results in the play. Well results are improving and the Company's costs to drill and complete operated wells are better than the costs of industry peers. The average estimated ultimate recovery (EUR) for the last 10 operated wells with meaningful production data is 2.7 BCFE to 3.0 BCFE. On the cost front, the Company's three most recent wells were drilled and completed for between $4.0 and $4.4 million per well. These wells had laterals approximately 3,600 feet in length and utilized the multistage fracture stimulations that are common throughout the play. During the quarter, the Company announced that it was increasing budgeted capital investment in the Woodford shale by $20 million dollars, which allows for two rigs to run continuously throughout the year with a third rig operating periodically.