Magnum
Hunter Resources, Inc.600 E. Las Colinas Blvd., Suite 1100, Irving, TX  75039Phone (972) 401-0752   Fax  (972) 401-3110Internet Address: [website omitted]

FOR IMMEDIATE RELEASENEWS

New York Stock Exchange*
  Common    -  MHRAmerican Stock Exchange*   Warrants   -  MHR/WS/A

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# MAGNUM HUNTER
INCREASES 2004 CAPITAL EXPENDITURE BUDGET BY
$20 MILLION TO $220 MILLION

# FUNDING TO BE FROM
RECORD LEVEL OF 2004 CASH DERIVED FROM
OPERATING ACTIVITIES

Irving, Texas, October 5, 2004,
Magnum Hunter Resources, Inc. (NYSE: MHR) announced today that its Board of Directors has
approved an increase in the Companys capital expenditure budget for fiscal year 2004
by $20 million from $200 million to $220 million.

Seventy-five percent of the $20
million increase will be directed to the Companys Gulf of Mexico (GOM)
drilling activities on lease blocks acquired from the Minerals Management Service over the
last four years. Magnum Hunter and its industry partners have continued to increase their
drilling efforts in the GOM this year in an effort to take full advantage of the
continuing higher commodity price environment.

Magnum Hunters 2004 capital
budget will be funded entirely from the Companys record high levels of cash flows
from operating activities for fiscal year 2004, based upon managements current
estimate of production and commodity prices for the remainder of the year. It is the
Companys plan to use available cash beyond what is required to fund the 2004 capital
expenditure budget for further reductions to outstanding long-term indebtedness.

The revised 2004 capital expenditure
budget will be broken down by operating region as follows:

|2004 Capital Budget 
|--------------------
|
|Gulf of Mexico      
|Southeast New Mexico
|West Texas          
|Mid-Continent       
|Gulf Coast (Onshore)
|                    
|Total               
|                    

The Company has budgeted to
participate in the drilling of approximately 150 new wells during 2004, including 40 wells
offshore in the shallow water GOM and 110 wells onshore, primarily in Southeastern New
Mexico, West Texas and the Texas Panhandle. In the GOM, 31% of the anticipated capital
expenditures will be spent on drilling, 30% on completion operations, and 39% on new
leases and facilities. Of the planned 40 GOM wells 32 are deemed exploratory and 8 are
developmental. Onshore, 108 of the 110 planned new wells for 2004 are deemed development.

Commenting on the increase in the
2004 capital expenditure budget, Mr. Richard R. Frazier, Executive Vice President and
Chief Operating Officer of Magnum Hunter stated, Commodity prices received during
2004 from our daily production mix has exceeded all previous estimates. Our net daily oil
and gas production is currently in the 250 Mmcfe per day range. We continue to divest of
non-strategic and high-operating cost properties which allow our net margins to continue
to improve. We are on track to grow our net daily production by an annual rate of almost
10%. With the recently announced EnCana and Permian acquisitions, Magnum Hunters
total proved reserves are just over 1 Tcfe. Even though we have been drilling higher risk
prospects, our management team has been able to continue to maintain a very high drilling
success rate of 96% during 2004 with a total of 118 wells completed successfully, out of
123 wells drilled through August 31, 2004.

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Magnum Hunter Resources, Inc. is one
of the nations fastest growing independent exploration and development companies
engaged in three principal activities: (1) the exploration, development and production
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: M. BRADLEY DAVIS SENIOR VICE PRESIDENT
 CAPITAL MARKETS (972) 401-0752

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