Western Gas Drills 2 Test Wells in the Denver Julesburg Area

Western Gas Resources has recently drilled and logged two test wells, which are waiting on completion, on its acreage in the northeastern area of the Denver Julesburg Basin in northeast Colorado and southwest Nebraska. The Company has recently increased its position from 275,000 acres to approximately 315,000 net acres (360,000 gross acres). The Company currently plans to drill an additional six test wells in the first quarter of 2004 to evaluate its exploratory leasehold.

The Company is targeting the Niobrara Formation, an unconventional biogenic gas reservoir, at approximately 2,500 feet. Completed well costs are approximately $200,000 with estimated reserves of 0.3 to 0.5 Bcf per well based on 80-acre drainage. If production testing proves successful, development drilling is expected to begin in mid-2004 with first sales anticipated in late 2004. The Company also expects to construct and operate gathering systems to deliver the gas to market.

Peter Dea, President and Chief Executive Officer, commented, "The consolidated leasehold we have established fits our strategy focused on unconventional natural gas in the Rockies with the potential for repeatable drilling of low cost reserves and capitalizing on fully integrated operations. If early exploration tests prove successful, we may have the potential for a fairway-type play which can be enhanced with 3-D seismic and our upstream, midstream and marketing expertise."