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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Roebear who wrote (50103)	8/31/1999 9:36:00 AM
From: The Ox	Read Replies (1) \| Respond to of 95453

Magnum Hunter Provides Update on Gulf of Mexico Drilling Program IRVING, Texas, Aug. 31 /PRNewswire/ -- Magnum Hunter Resources, Inc. (Amex: MHR) ("Magnum Hunter") announced today an update on the Company's drilling activities in the Gulf of Mexico. Magnum Hunter is participating in an "across the board" drilling program with a 25% ownership interest on twelve separate OCS blocks located in shallow waters of the Gulf of Mexico. On High Island Block A-153, the Company has drilled a well that encountered gas at approximately 3,000 feet true vertical depth (TVD). The well was plugged back and sidetracked to the northwest where an additional gas zone was encountered at approximately 5700 feet TVD. The two gas zones will be developed from a single platform with production commencing in early 2000. The first well has been drilled on South Timbalier Block 264 and encountered gas pay at approximately 8,000 feet TVD. Production casing has been set in the well. From the same drill-site, the second of three wells planned on this lease block is in the process of being commenced utilizing the existing drilling rig on location. In a new transaction, Magnum Hunter has acquired a 12.5% working interest from Burlington Resources Offshore, Inc., a wholly-owned subsidiary of Burlington Resources, Inc. (NYSE: BR), in an exploratory project on Vermillion Block 84. An exploration well is scheduled to commence on the block in early September, 1999 under a turnkey drilling contract. Included in the acquisition is a 12.5% ownership interest in the existing platform and facilities for the Vermillion Block 84 gas field. The field currently produces gas from one well at the rate of approximately one million cubic feet per day and has an identified development prospect which can be drilled from the existing platform. Commenting on the Gulf of Mexico drilling program, Matthew C. Lutz, Chairman and Executive Vice President of Exploration and Business Development stated, "Exploratory drilling has taken place on five of the twelve offshore prospects jointly owned with Tana Oil and Gas and three of the five (60%) are indicated to be gas productive. Additional drilling is scheduled to fully develop two of these offshore discoveries. The acquisition from Burlington adds new potential to our expanded Gulf of Mexico drilling program by combining existing production, a development prospect and a high impact exploration well that is in the process of being drilled." Magnum Hunter Resources, Inc. is one of the nation's fastest growing independent exploration and development companies engaged in three principal activities: (1) the acquisition, production and sale of crude oil, condensate and natural gas; (2) the gathering, transmission and marketing of natural gas; and (3) the managing and operating of producing oil and natural gas properties for interest owners. The information in this release includes certain forward-looking statements that are based on assumptions that in the future may prove not to have been accurate. Those statements, and Magnum Hunter Resources, Inc.'s business and prospects, are subject to a number of risks, including volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund its operations, environmental risks, drilling and operating risks, risks related to exploration and development drilling, uncertainties about estimates of reserves, competition, government regulation, and the ability of the company to implement its business strategy. These and other risks are described in the company's reports that are available from the SEC. For further information contact: Michael P. McInerney, Investor Relations of Magnum Hunter Resources, Inc., 972-401-0752. SOURCE Magnum Hunter Resources, Inc. CO: Magnum Hunter Resources, Inc.; Burlington Resources Offshore, Inc.; Burlington Resources, Inc. ST: Texas IN: OIL SU: 08/31/99 06:58 EDT prnewswire.com