Magnum Hunter Resources said it has participated in three new field discoveries in the Gulf of Mexico that the company estimates will add 36 MMcf/d of gas production (12 MMcf/d net to Magnum Hunter) later this year.

“Our company’s daily oil and gas production from the Gulf of Mexico continues to increase each quarter with production now averaging 55 MMcfe/d,” said Charles R. (Chuck) Erwin, senior vice president of exploration. “Our ability to ‘fast track’ some of our 2003 discoveries in order that we can benefit immediately from current high commodity prices, should bode well for our second half 2003 income estimates.

“With drilling rig and service costs remaining at unusually low levels in relation to current commodity prices, the Gulf of Mexico will capture a minimum of $60 million or 60% of our company’s 2003 capital budget,” he said. “Magnum Hunter will be participating in an additional seven wells in the Gulf of Mexico prior to year-end.”

The company said its Main Pass 163 No.3 discovery tested at 11.5 MMcfe/d. Commercial production from the well is expected to begin in the fourth quarter. Magnum Hunter also operates a development well with a 50% working interest in the Main Pass 263 lease block. It is scheduled to be on production in the third quarter. Its Vermilion 100 discovery was tested from two wells with a combined gross rate of over 17 MMcfe.

It owns a 40% working interest in this discovery and Remington Oil and Gas is the operator with a 60% working interest. Production is scheduled for sometime in the fourth quarter. Another discovery in the Vermilion 117 lease block is in the process of being completed.

Production also has recently begun on several other Gulf wells that were drilled earlier in 2003. At South Marsh Island 24, production from a deep shelf well was initiated in May 2003 at 23 MMcfe/d. At East Cameron 344, a sidetrack of the No. A-2 well began gross production in early June at 7.5 MMcfe/d. Additionally, at Eugene Island 397, the No. A- 8 well is being completed and the No. A-9 well has been proposed.

Magnum Hunter has drilled two dry holes thus far in the second quarter of 2003. The South Timbalier109 and West Cameron 253 prospects, 30% ownership and 40% ownership, respectively, did not find sufficient reserves to justify completion.

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