Cimarex Announces Second-Quarter Production Volumes and Provides Operations Update

Cimarex Announces Second-Quarter Production Volumes and Provides Operations
Update

DENVER, July 23 /PRNewswire-FirstCall/ -- Cimarex Energy Co. (NYSE: XEC)
today announced that second-quarter 2008 oil and gas production volumes
averaged 488.4 million cubic feet equivalent per day (MMcfe/d), up 10% from
the second-quarter 2007 average of 442.6 MMcfe/d.
Second-quarter 2008 oil production grew 13% over last year's
second-quarter to an average of 22,471 barrels per day. Gas production in the
latest quarter averaged 353.5 million cubic feet per day (MMcf/d), an increase
of 9% from the second-quarter 2007 average of 323.8 MMcf/d.
Second-quarter 2008 realized prices are expected to be in the range of
$10.45 to $10.65 per thousand cubic feet of gas and $121 to $122 per barrel of
oil.
Exploration and Development Activity
Cimarex drilled 252 gross (158 net) wells during the first six months of
2008, completing 94% as producers. Exploration and development (E&D) capital
investment for the first-half of 2008 totaled approximately $667 million.
Full-year 2008 E&D capital investment is projected to be approximately $1.3 --
$1.5 billion. Cimarex currently has 39 operated rigs running.
Mid-Continent
First-half 2008 drilling totaled 133 gross (73 net) wells, completing 98%
as producers. Second-quarter 2008 Mid-Continent production averaged 219.2
MMcfe/d, an increase of 20% over second-quarter 2007.
Texas Panhandle Granite Wash drilling totaled 61 gross (45 net) wells with
100% completed as producers. Notable wells commencing production in the
second quarter include Killbrew 218-4 (100% working interest) at 5.3 MMcfe/d,
Earp 60 10H (100% working interest) at 4.6 MMcfe/d, Isaacs 1-7H (100% working
interest) at 3.2 MMcfe/d and the Campbell 53-8H (100% working interest) at 3.1
MMcfe/d.
Anadarko Basin, Arkoma Basin and southern Oklahoma drilling totaled 72
gross (28 net) wells with 96% being completed as producers. In the Anadarko
Basin, eleven horizontal wells have been drilled in the Woodford Shale. The
wells drilled are in various stages of completion and evaluation. Three
operated rigs are currently drilling horizontal Anadarko-Woodford wells.
Production rates from other notable Oklahoma vertical wells include the Toelle
4-7 (63% working interest) at 12.0 MMcfe/d and the Fox 1-13 (43% working
interest) at 5.9 MMcfe/d (920 barrels of oil per day and 0.4 MMcf/d)
Sixteen operated rigs are currently drilling in the Mid-Continent region,
including nine in the Texas Panhandle and seven in Oklahoma.
Permian Basin
First-half 2008 drilling totaled 97 gross (69 net) wells, 97% of which
were completed as producers. Second-quarter 2008 Permian Basin production
averaged 163.3 MMcfe/d, a 15% increase over the second quarter of 2007. Oil
production reached another record high of 12,399 barrels per day, 35% greater
than the second quarter of 2007. Increased oil production is a result of
successful horizontal drilling programs in southeast New Mexico and West
Texas.
Southeast New Mexico first-half 2008 drilling, mainly targeting the
Morrow, Abo and Wolfcamp formations, totaled 49 gross (33 net) wells with 94%
being completed as producers. Recent horizontal Wolfcamp and Abo wells
brought on production include the Drumstick 7 Fed 1H (50% working interest) at
325 barrels oil equivalent per day (BOE/d), County Line Fed 1H (55% working
interest) at 225 BOE/d, Cave Lake 24 Fed 3H (62% working interest) at 190
BOE/d. The White City 31 Fed 4 (100% working interest) a Morrow well
commenced production this quarter averaging 5.1 MMcfe/d.
A total of 48 gross (36 net) wells were drilled in West Texas, of which
100% were completed as producers. Third Bone Spring horizontal oil drilling
totaled 10 gross (9 net) wells. Recent Bone Spring wells brought on
production include the Cimarex University 18-41 B 1H (100% working interest)
at 670 BOE/d, Monroe Estate 1-8 1H (100% working interest) at 450 BOE/d and
the Warwink University 18-26 A 2H (37.5% working interest) at 380 BOE/d.
Cimarex has 19 operated rigs drilling in the Permian Basin, including nine
in southeast New Mexico and ten in West Texas.
Gulf Coast/Gulf of Mexico
Cimarex drilled 19 gross (15 net) Gulf Coast wells in the first half of
2008, completing 58% as producers. Second-quarter 2008 Gulf Coast production
volumes averaged 80.1 MMcfe/d, a 11% increase over second-quarter 2007.
Offshore production volumes averaged 20.9 MMcfe/d, as compared to 38.6 MMcfe/d
in the second quarter of 2007. Decline in offshore production is a result of
an inactive drilling program, natural reservoir depletion and the December
2007 sale of operated Main Pass properties. Remaining offshore production is
being marketed for sale.
South Texas, Yegua/Cook Mountain drilling totaled 11 gross (9 net) wells
with a 55% success rate. Wells recently commencing production include the
Jack Knife 1 (70% working interest) at 4.5 MMcfe/d (1.9 MMcf/d of gas and 430
barrels of oil per day) and the Clubb West 2 (70% working interest) at 3.8
MMcfe/d (1.2 MMcf/d of gas and 435 barrels of oil per day).
Cimarex has four operated onshore Gulf Coast rigs drilling South Texas,
Yegua/Cook Mountain prospects.
Cimarex will release its second-quarter 2008 financial results on Tuesday,
August 5, 2008 before the market opens and will host a follow-up conference
call at 11:00 a.m. Mountain Time (1:00 p.m. Eastern Time). To access the
live, interactive call, please dial 888-603-6873 and reference call ID
#55614975 ten minutes before the scheduled start time. A digital replay will
be available for one week following the live broadcast at 800-642-1687 and by
using the conference ID #55614975. The listen-only web cast of the call will
be accessible via http://www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration
and production company with principal operations in the Mid-Continent, Permian
Basin and Gulf Coast areas of the U.S.
This communication contains statements that constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are based on current expectations and beliefs and
are subject to a number of risks, uncertainties and assumptions that could
cause actual results to differ materially from those described in the
forward-looking statements. These risks and uncertainties are more fully
described in SEC reports filed by Cimarex. While Cimarex makes these
forward-looking statements in good faith, management cannot guarantee that
anticipated future results will be achieved. Cimarex assumes no obligation and
expressly disclaims any duty to update the information contained herein except
as required by law.
SOURCE Cimarex Energy Co.

Mark Burford, Director of Capital Markets of Cimarex Energy Co.,
+1-303-295-3995