Magnum Hunter Expands Gulf of Mexico Drilling Program

Magnum Hunter Resources, Inc. has significantly expanded its drilling program in the Gulf of Mexico through several recent acquisitions and the commitment of new capital. Magnum Hunter acquired a 25 percent working interest in four Gulf of Mexico offshore prospects from Remington Oil and Gas Corporation. The first well in this new drilling program is scheduled to commence during the first week of January on East Cameron Block 364. The company also acquired a 100 percent working interest in Main Pass Block 178 from Union Pacific Resources Group, Inc.Two recently drilled wells on this block have indicated pay and are currently suspended. The company is reviewing development plans for this project in the first half of 2000 after the recent acquisition of 3-D seismic. Magnum Hunter began participating as a working interest owner in the Gulf of Mexico in May 1999 and to-date, has been successful on four out of six exploration prospects drilled. Production from two of the discoveries is scheduled to commence in January and February 2000 (Ship Shoal 278 and Vermilion 84).