Document:

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                                                                     EXHIBIT 4.3

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                          REGISTRATION RIGHTS AGREEMENT

                           Dated as of March 15, 2002

                                      Among

                          MAGNUM HUNTER RESOURCES, INC.

                                       and

                          THE GUARANTORS NAMED HEREIN,

                                   as Issuers

                                       and

                         DEUTSCHE BANC ALEX. BROWN INC.

                                       and

                   THE OTHER INITIAL PURCHASERS NAMED HEREIN,

                              as Initial Purchasers

                           9.60% Senior Notes due 2012

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                   Page
                                                                   ----
<S>                                                                <C>
1. Definitions ......................................................1

2. Exchange Offer ...................................................5

3. Shelf Registration ...............................................8

4. Additional Interest .............................................10

5. Registration Procedures .........................................11

6. Registration Expenses ...........................................20

7. Indemnification .................................................21

8. Rules 144 and 144A ..............................................24

9. Underwritten Registrations ......................................25

10. Miscellaneous ..................................................25

        (a)  No Inconsistent Agreements ............................25
        (b)  Adjustments Affecting Registrable Notes ...............25
        (c)  Amendments and Waivers ................................25
        (d)  Notices ...............................................26
        (e)  Successors and Assigns ................................27
        (f)  Counterparts ..........................................27
        (g)  Headings ..............................................27
        (h)  Governing Law .........................................27
        (i)  Severability ..........................................27
        (j)  Securities Held by the Company or Its Affiliates ......27
        (k)  Third-Party Beneficiaries .............................27
        (n)  Entire Agreement ......................................28
</TABLE>

                                      -i-

<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

                  This Registration Rights Agreement (this "Agreement") is dated
as of March 15, 2002, among MAGNUM HUNTER RESOURCES, INC., a Nevada corporation
(the "Company"), as issuer, Magnum Hunter Production, Inc., Gruy Petroleum
Management Co., Hunter Gas Gathering, Inc., TRAPMAR PROPERTIES, INC., Conmag
Energy Corporation, PINTAIL ENERGY, INC., PRIZE OPERATING COMPANY, PEC
(DELAWARE), INC., PRIZE ENERGY RESOURCES, L.P. and OKLAHOMA GAS PROCESSING,
INC., as guarantors (the "Guarantors," and together with the Company, the
"Issuers"), and DEUTSCHE BANC ALEX. BROWN INC., LEHMAN BROTHERS INC., CIBC WORLD
MARKETS CORP., BNP PARIBAS SECURITIES CORP., SWS SECURITIES, INC., MONNESS,
CRESPI, HARDT & CO., INC., RBC DOMINION SECURITIES CORPORATION, SAN JACINTO
SECURITIES, INC., FROST SECURITIES, INC., RYAN BECK & CO., LLC and HARTSFIELD
CAPITAL SECURITIES, INC., as initial purchasers (the "Initial Purchasers").

                  This Agreement is entered into in connection with the Purchase
Agreement, dated as of March 13, 2002, among the Issuers and the Initial
Purchasers (the "Purchase Agreement"), which provides for the sale by the
Company to the Initial Purchasers of $300,000,000 aggregate principal amount of
the Company's 9.60% Senior Notes due 2012 (the "Notes"), guaranteed by the
Guarantors (the "Guarantees"). In order to induce the Initial Purchasers to
enter into the Purchase Agreement, the Issuers have agreed to provide the
registration rights set forth in this Agreement for the benefit of the Initial
Purchasers and any subsequent holder or holders of the Notes. The execution and
delivery of this Agreement is a condition to the Initial Purchasers' obligation
to purchase the Notes under the Purchase Agreement.

                  The parties hereby agree as follows:

1.       Definitions

                  As used in this Agreement, the following terms shall have the
following meanings:

                  Additional Interest:  See Section 4(a) hereof.

                  Advice:  See the last paragraph of Section 5 hereof.

                  Agreement:  See the introductory paragraphs hereto.

                  Applicable Period:  See Section 2(b) hereof.

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                                      -2-

                  Effectiveness Date: The 180th day after the Issue Date;
provided, however, that with respect to any Shelf Registration, the
Effectiveness Date shall be the later of (i) the 180th day after the Issue Date
and (ii) the 105th day after the Filing Date with respect thereto.

                  Effectiveness Period:  See Section 3(a) hereof.

                  Event Date:  See Section 4 hereof.

                  Exchange Act:  The Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder.

                  Exchange Notes:  See Section 2(a) hereof.

                  Exchange Offer:  See Section 2(a) hereof.

                  Exchange Offer Registration Statement: See Section 2(a)
hereof.

                 Filing Date: (A) If no Exchange Offer Registration Statement
has been filed by the Issuers pursuant to this Agreement, the 90th day after the
Issue Date; and (B) with respect to a Shelf Registration in each other case
(which may be applicable notwithstanding the consummation of the Exchange
Offer), the 60th day after the delivery of a Shelf Notice.

                  Holder:  Any holder of a Registrable Note or Registrable
Notes.

                  Indemnified Person:  See Section 7(c) hereof.

                  Indemnifying Person:  See Section 7(c) hereof.

                  Indenture: The Indenture, dated as of March 15, 2002, by and
among the Issuers and Bankers Trust Company, as Trustee, pursuant to which the
Notes and the Guarantees are being issued, as the same may be amended or
supplemented from time to time in accordance with the terms thereof.

                  Initial Purchasers:  See the introductory paragraphs hereto.

                  Initial Shelf Registration:  See Section 3(a) hereof.

                  Inspectors:  See Section 5(n) hereof.

                  Issue Date:  March 15, 2002, the date of original issuance of
                  the Notes.

                  Issuers:  See the introductory paragraphs hereto.

                  NASD:  See Section 5(s) hereof.

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                                       -3-

             Participant:  See Section 7(a) hereof.

             Participating Broker-Dealer:  See Section 2(a) hereof.

             Person: An individual, trustee, corporation, partnership, joint
stock company, trust, unincorporated association, union, business association,
firm or other legal entity.

             Private Exchange:  See Section 2(b) hereof.

             Private Exchange Notes:  See Section 2(b) hereof.

             Prospectus: The prospectus included in any Registration Statement
(including, without limitation, any prospectus subject to completion and a
prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act and any term sheet filed pursuant to Rule
434 under the Securities Act), as amended or supplemented by any prospectus
supplement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference
or deemed to be incorporated by reference in such Prospectus.

             Purchase Agreement:  See the introductory paragraphs hereof.

             Records:  See Section 5(n) hereof.

             Registrable Notes: Each Note upon its original issuance and at all
times subsequent thereto, each Exchange Note as to which Section 2(c)(iv) hereof
is applicable upon original issuance and at all times subsequent thereto and
each Private Exchange Note upon original issuance thereof and at all times
subsequent thereto, until, in each case, the earliest to occur of (i) a
Registration Statement (other than, with respect to any Exchange Note as to
which Section 2(c)(iv) hereof is applicable, the Exchange Offer Registration
Statement) covering such Note, Exchange Note or Private Exchange Note has been
declared effective by the SEC and such Note, Exchange Note or such Private
Exchange Note, as the case may be, has been disposed of in accordance with such
effective Registration Statement, (ii) such Note has been exchanged pursuant to
the Exchange Offer for an Exchange Note or Exchange Notes that may be resold
without restriction under state and federal securities laws, (iii) such Note,
Exchange Note or Private Exchange Note, as the case may be, ceases to be
outstanding for purposes of the Indenture, (iv) such Note, Exchange Note or
Private Exchange Note, as the case may be, is sold in compliance with Rule 144
or (v) such Note, Exchange Note or Private Exchange Note, as the case may be,
may be resold without restriction pursuant to Rule 144(k) under the Securities
Act.

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                                      -4-

         Registration Statement: Any registration statement of the Company
and/or the Guarantors that covers any of the Notes, the Exchange Notes or the
Private Exchange Notes (and the related Guarantees) filed with the SEC under the
Securities Act, including the Prospectus, amendments and supplements to such
registration statement, including post-effective amendments, all exhibits, and
all material incorporated by reference or deemed to be incorporated by reference
in such registration statement.

         Rule 144: Rule 144 promulgated under the Securities Act, as such Rule
may be amended from time to time, or any similar rule (other than Rule 144A) or
regulation hereafter adopted by the SEC providing for offers and sales of
securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of the issuer of such securities
being free of the registration and prospectus delivery requirements of the
Securities Act.

         Rule 144A: Rule 144A promulgated under the Securities Act, as such Rule
may be amended from time to time, or any similar rule (other than Rule 144) or
regulation hereafter adopted by the SEC.

         Rule 415: Rule 415 promulgated under the Securities Act, as such Rule
may be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC.

         SEC: The Securities and Exchange Commission.

         Securities Act: The Securities Act of 1933, as amended, and the rules
and regulations of the SEC promulgated thereunder.

         Shelf Notice: See Section 2(c) hereof.

         Shelf Registration: See Section 3(b) hereof.

         Shelf Registration Statement: Any Registration Statement relating to a
Shelf Registration.

         Subsequent Shelf Registration: See Section 3(b) hereof.

         TIA: The Trust Indenture Act of 1939, as amended.

         Trustee: The trustee under the Indenture and the trustee (if any) under
any indenture governing the Exchange Notes and Private Exchange Notes.

         Underwritten registration or underwritten offering: A registration in
which securities of one or more of the Issuers are sold to an underwriter for
reoffering to the public.

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                                      -5-

    2. Exchange Offer

         (a) Unless the Exchange Offer would violate applicable law or any
applicable interpretation of the staff of the SEC, the Issuers shall file with
the SEC, no later than the Filing Date, a Registration Statement (the "Exchange
Offer Registration Statement") on an appropriate registration form with respect
to a registered offer (the "Exchange Offer") to exchange any and all of the
Registrable Notes for a like aggregate principal amount of notes (the "Exchange
Notes") of the Company, guaranteed by the Guarantors, that are identical in all
material respects to the Notes except that the Exchange Notes shall contain no
restrictive legend thereon, and that interest thereon shall accrue from the last
date on which interest was paid on the Registrable Notes so exchanged or (if no
such interest has been paid) from the Issue Date, and which are entitled to the
benefits of the Indenture or a trust indenture which is identical in all
material respects to the Indenture (other than such changes to the Indenture or
any such identical trust indenture as are necessary to comply with the TIA) and
which, in either case, has been qualified under the TIA. The Exchange Offer
shall comply with all applicable tender offer rules and regulations under the
Exchange Act and other applicable law. The Issuers shall use their reasonable
best efforts to (x) cause the Exchange Offer Registration Statement to be
declared effective under the Securities Act on or before the Effectiveness Date;
(y) keep the Exchange Offer open for at least 30 days (or longer if required by
applicable law) after the date that notice of the Exchange Offer is mailed to
Holders; and (z) consummate the Exchange Offer on or prior to the 210th day
following the Issue Date. If, after the Exchange Offer Registration Statement is
initially declared effective by the SEC, the Exchange Offer or the issuance of
the Exchange Notes thereunder is interfered with by any stop order, injunction
or other order or requirement of the SEC or any other governmental agency or
court, the Exchange Offer Registration Statement shall be deemed not to have
become effective for purposes of this Agreement.

         Each Holder that participates in the Exchange Offer will be required,
as a condition to its participation in the Exchange Offer, to represent to the
Company in writing (which may be contained in the applicable letter of
transmittal) (i) that any Exchange Notes to be received by it will be acquired
in the ordinary course of its business, (ii) that at the time of the
commencement of the Exchange Offer such Holder will have no arrangement or
understanding with any Person to participate in the distribution (within the
meaning of the Securities Act) of the Exchange Notes in violation of the
provisions of the Securities Act, (iii) that such Holder is not an affiliate (as
defined in Rule 405 promulgated under the Securities Act) of the Company, (iv)
if such Holder is not a Participating Broker-Dealer (as defined below), that it
is not engaged in, and does not intend to engage in, the distribution of
Exchange Notes and (v) if such Holder is a Participating Broker-Dealer that will
receive Exchange Notes for its own account in exchange for Notes that were
acquired as a result of market-making or other trading activities, that it will
deliver a prospectus in connection with any resale of such Exchange Notes.

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                                      -6-

         Upon consummation of the Exchange Offer in accordance with this Section
2, the provisions of this Agreement shall continue to apply, mutatis mutandis,
solely with respect to Registrable Notes that are Private Exchange Notes,
Exchange Notes as to which Section 2(c)(iv) is applicable and Exchange Notes
held by Participating Broker-Dealers (as defined), and the Issuers shall have no
further obligation to register Registrable Notes (other than Private Exchange
Notes and other than in respect of any Exchange Notes as to which clause
2(c)(iv) hereof applies) pursuant to Section 3 hereof.

         No securities other than the Exchange Notes shall be included in the
Exchange Offer Registration Statement.

         (b) The Issuers shall include within the Prospectus contained in the
Exchange Offer Registration Statement a section entitled "Plan of Distribution,"
reasonably acceptable to the Initial Purchasers, which shall contain a summary
statement of the positions taken or policies made by the staff of the SEC with
respect to the potential "underwriter" status of any broker-dealer that is the
beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of Exchange
Notes received by such broker-dealer in the Exchange Offer (a "Participating
Broker-Dealer"), whether such positions or policies have been publicly
disseminated by the staff of the SEC or such positions or policies represent the
prevailing views of the staff of the SEC. Such "Plan of Distribution" section
shall also expressly permit, to the extent permitted by applicable policies and
regulations of the SEC, the use of the Prospectus by all Persons subject to the
prospectus delivery requirements of the Securities Act, including, to the extent
permitted by applicable policies and regulations of the SEC, all Participating
Broker-Dealers, and include a statement describing the means by which
Participating Broker-Dealers may resell the Exchange Notes in compliance with
the Securities Act.

         The Issuers shall use their reasonable best efforts to keep the
Exchange Offer Registration Statement effective and to amend and supplement the
Prospectus contained therein in order to permit such Prospectus to be lawfully
delivered by all Persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as is necessary to comply with applicable
law in connection with any resale of the Exchange Notes covered thereby;
provided, however, that such period shall not exceed 180 days after such
Exchange Offer Registration Statement is declared effective (or such longer
period if extended pursuant to the last paragraph of Section 5 hereof) (the
"Applicable Period").

         If, prior to consummation of the Exchange Offer, any Initial Purchaser
holds any Notes acquired by it that have the status of an unsold allotment in
the initial distribution, the Company upon the written request of any such
Initial Purchaser shall simultaneously with the delivery of the Exchange Notes
in the Exchange Offer, issue and deliver to any such Initial Purchaser, in
exchange (the "Private Exchange") for such Notes held by any such Initial
Purchaser, a like principal amount of notes (the "Private Exchange Notes") of
the Company, guaranteed by the Guarantors, that are identical in all material
respects to the Exchange Notes

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                                      -7-

except for the placement of a restrictive legend on such Private Exchange Notes.
The Private Exchange Notes shall be issued pursuant to the same indenture as the
Exchange Notes and bear the same CUSIP number as the Exchange Notes.

                  In connection with the Exchange Offer, the Issuers shall:

                  (1) mail, or cause to be mailed, to each Holder of record
         entitled to participate in the Exchange Offer a copy of the Prospectus
         forming part of the Exchange Offer Registration Statement, together
         with an appropriate letter of transmittal and related documents;

                  (2) use their reasonable best efforts to keep the Exchange
         Offer open for not less than 30 days after the date that notice of the
         Exchange Offer is mailed to Holders (or longer if required by
         applicable law);

                  (3) utilize the services of a depositary for the Exchange
         Offer with an address in the Borough of Manhattan, The City of New
         York;

                  (4) permit Holders to withdraw tendered Notes at any time
         prior to the close of business, New York time, on the last business day
         on which the Exchange Offer remains open; and

                  (5) otherwise comply in all material respects with all
         applicable laws, rules and regulations.

                  As soon as practicable after the close of the Exchange Offer
and the Private Exchange, if any, the Issuers shall:

                  (1) accept for exchange all Registrable Notes validly tendered
         and not validly withdrawn pursuant to the Exchange Offer and the
         Private Exchange, if any;

                  (2) deliver to the Trustee for cancellation all Registrable
         Notes so accepted for exchange; and

                  (3) cause the Trustee to authenticate and deliver promptly to
         each Holder of Notes, Exchange Notes or Private Exchange Notes, as the
         case may be, equal in principal amount to the Notes of such Holder so
         accepted for exchange; provided that, in the case of any Notes held in
         global form by a depositary, authentication and delivery to such
         depositary of one or more replacement Notes in global form in an
         equivalent principal amount thereto for the account of such Holders in
         accordance with the Indenture shall satisfy such authentication and
         delivery requirement.

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                                      -8-

         The Exchange Offer and the Private Exchange shall not be subject to any
conditions, other than that (i) the Exchange Offer or Private Exchange, as the
case may be, does not violate applicable law or any applicable interpretation of
the staff of the SEC, (ii) no action or proceeding shall have been instituted or
threatened in any court or by any governmental agency which might materially
impair the ability of the Issuers to proceed with the Exchange Offer or the
Private Exchange, and no material adverse development shall have occurred in any
existing action or proceeding with respect to the Issuers and (iii) all
governmental approvals shall have been obtained, which approvals the Issuers
deem necessary for the consummation of the Exchange Offer or Private Exchange.

         The Exchange Notes and the Private Exchange Notes shall be issued under
(i) the Indenture or (ii) an indenture identical in all material respects to the
Indenture and which, in either case, has been qualified under the TIA or is
exempt from such qualification and shall provide that the Exchange Notes shall
not be subject to the transfer restrictions set forth in the Indenture. The
Indenture or such indenture shall provide that the Exchange Notes, the Private
Exchange Notes and the Notes shall vote and consent together on all matters as
one class and that none of the Exchange Notes, the Private Exchange Notes or the
Notes will have the right to vote or consent as a separate class on any matter.

         (c) If, (i) because of any change in law or in currently prevailing
interpretations of the staff of the SEC, the Issuers are not permitted to effect
the Exchange Offer, (ii) the Exchange Offer is not consummated within 210 days
of the Issue Date, (iii) any holder of Private Exchange Notes so requests in
writing to the Company within 60 days after the consummation of the Exchange
Offer, or (iv) in the case of any Holder that participates in the Exchange
Offer, such Holder does not receive Exchange Notes on the date of the exchange
that may be sold without restriction under state and federal securities laws
(other than due solely to the status of such Holder as an affiliate of the
Company within the meaning of the Securities Act or the prospectus delivery
requirements of a Participating Broker-Dealer) and within 60 days following
consummation of the Exchange Offer such Holder requests, then in the case of
each of clauses (i) to and including (iv) of this sentence, the Company shall
promptly deliver to the Holders and the Trustee written notice thereof (the
"Shelf Notice") and shall file a Shelf Registration pursuant to Section 3
hereof.

   3. Shelf Registration

         If at any time a Shelf Notice is delivered as contemplated by Section
2(c) hereof, then:

         (a) Shelf Registration. The Issuers shall file with the SEC a
Registration Statement for an offering to be made on a continuous basis pursuant
to Rule 415 covering all of the Registrable Notes not exchanged in the Exchange
Offer, Private Exchange Notes and Exchange Notes as to which Section 2(c)(iv) is
applicable (the "Initial Shelf Registration").

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                                      -9-

The Issuers shall use their best efforts to file with the SEC the Initial Shelf
Registration on or before the applicable Filing Date. The Initial Shelf
Registration shall be on Form S-3 or another appropriate form permitting
registration of such Registrable Notes for resale by Holders in the manner or
manners designated by them (including, without limitation, one or more
underwritten offerings). The Issuers shall not permit any securities other than
the Registrable Notes to be included in the Initial Shelf Registration or any
Subsequent Shelf Registration (as defined below).

         The Issuers shall use their reasonable best efforts to cause the
Initial Shelf Registration to be declared effective under the Securities Act on
or prior to the Effectiveness Date and to keep the Initial Shelf Registration
continuously effective under the Securities Act until the date that is two years
from the Issue Date (the "Effectiveness Period"), or such shorter period ending
when (i) all Registrable Notes covered by the Initial Shelf Registration have
been sold in the manner set forth and as contemplated in the Initial Shelf
Registration, (ii) all Registrable Notes cease to be Registrable Notes or (iii)
a Subsequent Shelf Registration covering all of the Registrable Notes covered by
and not sold under the Initial Shelf Registration or an earlier Subsequent Shelf
Registration has been declared effective under the Securities Act; provided,
however, that the Effectiveness Period in respect of the Initial Shelf
Registration shall be extended to the extent required to permit dealers to
comply with the applicable prospectus delivery requirements of Rule 174 under
the Securities Act and as otherwise provided herein.

         (b) Subsequent Shelf Registrations. If the Initial Shelf Registration
or any Subsequent Shelf Registration ceases to be effective for any reason at
any time during the Effectiveness Period (other than because of the sale of all
of the securities registered thereunder), the Issuers shall us e their best
efforts to obtain the prompt withdrawal of any order suspending the
effectiveness thereof, and in any event shall within 30 days of such cessation
of effectiveness amend such Shelf Registration Statement in a manner to obtain
the withdrawal of the order suspending the effectiveness thereof, or file an
additional Shelf Registration Statement pursuant to Rule 415 covering all of the
Registrable Notes covered by and not sold under the Initial Shelf Registration
or an earlier Subsequent Shelf Registration (each, a "Subsequent Shelf
Registration"). If a Subsequent Shelf Registration is filed, the Issuers shall
use their reasonable best efforts to cause the Subsequent Shelf Registration to
be declared effective under the Securities Act as soon as practicable after such
filing and to keep such subsequent Shelf Registration continuously effective for
a period equal to the number of days in the Effectiveness Period less the
aggregate number of days during which the Initial Shelf Registration or any
Subsequent Shelf Registration was previously continuously effective. As used
herein the term "Shelf Registration" means the Initial Shelf Registration and
any Subsequent Shelf Registration.

         (c) Supplements and Amendments. The Issuers shall promptly supplement
and amend any Shelf Registration if required by the rules, regulations or
instructions applicabIle to the registration form used for such Shelf
Registration, if required by the Securities Act, or if

<PAGE>

                                      -10-

reasonably requested by the Holders of a majority in aggregate principal amount
of the Registrable Notes covered by such Registration Statement or by any
underwriter of such Registrable Notes.

     4. Additional Interest

     (a) The Issuers and the Initial Purchasers agree that the Holders will
suffer damages if the Issuers fail to fulfill their obligations under Section 2
or Section 3 hereof and that it would not be feasible to ascertain the extent of
such damages with precision. Accordingly, the Company agrees to pay, as
liquidated damages, additional interest on the Notes ("Additional Interest")
under the circumstances and to the extent set forth below (each of which shall
be given independent effect):

          (i)           if (A) neither the Exchange Offer Registration Statement
          nor the Initial Shelf Registration has been filed on or prior to the
          applicable Filing Date or (B) notwithstanding that the Issuers have
          consummated or will consummate the Exchange Offer, the Issuers are
          required to file a Shelf Registration and such Shelf Registration is
          not filed on or prior to the Filing Date applicable thereto, then,
          commencing on the day after any such Filing Date, Additional Interest
          shall accrue on the principal amount of the Notes at a rate of 0.50%
          per annum for the first 90 days immediately following each such Filing
          Date, and such Additional Interest rate shall increase by an
          additional 0.50% per annum at the beginning of each subsequent 90-day
          period; or

          (ii)          if (A) neither the Exchange Offer Registration Statement
          nor the Initial Shelf Registration is declared effective by the SEC on
          or prior to the relevant Effectiveness Date or (B) notwithstanding
          that the Issuers have consummated or will consummate the Exchange
          Offer, the Issuers are required to file a Shelf Registration and such
          Shelf Registration is not declared effective by the SEC on or prior to
          the Effectiveness Date in respect of such Shelf Registration, then,
          commencing on the day after such Effectiveness Date, Additional
          Interest shall accrue on the principal amount of the Notes at a rate
          of 0.50% per annum for the first 90 days immediately following the day
          after such Effectiveness Date, and such Additional Interest rate shall
          increase by an additional 0.50% per annum at the beginning of each
          subsequent 90-day period; or

          (iii)         if (A) the Issuers have not exchanged Exchange Notes for
          all Notes validly tendered in accordance with the terms of the
          Exchange Offer on or prior to the 210th day after the Issue Date or
          (B) if applicable, a Shelf Registration has been declared effective
          and such Shelf Registration ceases to be effective at any time during
          the Effectiveness Period, then Additional Interest shall accrue on the
          principal amount of the Notes at a rate of 0.50% per annum

<PAGE>

                                      -11-

          for the first 90 days commencing on the (x) 210th day after such
          effective date, in the case of (A) above, or (y) the day such Shelf
          Registration ceases to be effective in the case of (B) above, and such
          Additional Interest rate shall increase by an additional 0.50% per
          annum at the beginning of each such subsequent 90-day period;

provided, however, that the Additional Interest rate on the Notes may not exceed
at any one time in the aggregate 1.0% per annum; provided, further, however,
that (1) upon the filing of the applicable Exchange Offer Registration Statement
or the applicable Shelf Registration as required hereunder (in the case of
clause (i) above of this Section 4(a)), (2) upon the effectiveness of the
Exchange Offer Registration Statement or the applicable Shelf Registration
Statement as required hereunder (in the case of clause (ii) of this Section
4(a)), or (3) upon the exchange of the applicable Exchange Notes for all Notes
tendered (in the case of clause (iii)(A) of this Section 4(a)), or upon the
effectiveness of the applicable Shelf Registration Statement which had ceased to
remain effective (in the case of (iii)(B) of this Section 4(a)), Additional
Interest on the Notes in respect of which such events relate as a result of such
clause (or the relevant subclause thereof), as the case may be, shall cease to
accrue.

          (b) The Company shall notify the Trustee within three business days
after each and every date on which an event occurs in respect of which
Additional Interest is required to be paid (an "Event Date"). Any amounts of
Additional Interest due pursuant to (a)(i), (a)(ii) or (a)(iii) of Section 4(a)
will be payable in cash semiannually on each March 15 and September 15 (to the
holders of record on the March 1 and September 1 immediately preceding such
dates), commencing with the first such date occurring after any such Additional
Interest commences to accrue. The amount of Additional Interest will be
determined by multiplying the applicable Additional Interest rate by the
principal amount of the Registrable Notes, multiplied by a fraction, the
numerator of which is the number of days such Additional Interest rate was
applicable during such period (determined on the basis of a 360-day year
comprised of twelve 30-day months and, in the case of a partial month, the
actual number of days elapsed), and the denominator of which is 360.

     5. Registration Procedures

          In connection with the filing of any Registration Statement pursuant
to Section 2 or 3 hereof, the Issuers shall effect such registrations to permit
the sale of the securities covered thereby in accordance with the intended
method or methods of disposition thereof, and pursuant thereto and in connection
with any Registration Statement filed by the Issuers hereunder each of the
Issuers shall:

     (a) Prepare and file with the SEC prior to the applicable Filing Date, a
Registration Statement or Registration Statements as prescribed by Section 2 or
3 hereof, and use its reasonable best efforts to cause each such Registration
Statement to become effective and remain

<PAGE>

                                      -12-

effective as provided herein; provided, however, that, if (1) such filing is
pursuant to Section 3 hereof, or (2) a Prospectus contained in the Exchange
Offer Registration Statement filed pursuant to Section 2 hereof is required to
be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period relating thereto and
from whom any Issuer has received written notice that it will be a Participating
Broker-Dealer in the Exchange Offer, before filing any Registration Statement or
Prospectus or any amendments or supplements thereto, the Issuers shall furnish
to and afford the Holders of the Registrable Notes covered by such Registration
Statement or each such Participating Broker-Dealer, as the case may be, their
counsel and the managing underwriters, if any, a reasonable opportunity to
review copies of all such documents (including copies of any documents to be
incorporated by reference therein and all exhibits thereto) proposed to be filed
(in each case at least five business days prior to such filing). The Issuers
shall not file any Registration Statement or Prospectus or any amendments or
supplements thereto if the Holders of a majority in aggregate principal amount
of the Registrable Notes covered by such Registration Statement, or any such
Participating Broker-Dealer, as the case may be, their counsel, or the managing
underwriters, if any, shall reasonably object on a timely basis.

     (b) Prepare and file with the SEC such amendments and post-effective
amendments to each Shelf Registration Statement or Exchange Offer Registration
Statement, as the case may be, as may be necessary to keep such Registration
Statement continuously effective for the Effectiveness Period or the Applicable
Period, as the case may be; cause the related Prospectus to be supplemented by
any Prospectus supplement required by applicable law, and as so supplemented to
be filed pursuant to Rule 424 (or any similar provisions then in force)
promulgated under the Securities Act; and comply with the provisions of the
Securities Act and the Exchange Act applicable to each of them with respect to
the disposition of all securities covered by such Registration Statement as so
amended or in such Prospectus as so supplemented and with respect to the
subsequent resale of any securities being sold by a Participating Broker-Dealer
covered by any such Prospectus. The Issuers shall be deemed not to have used
their reasonable best efforts to keep a Registration Statement effective during
the Effectiveness Period or the Applicable Period, as the case may be, relating
thereto if any Issuer voluntarily takes any action that would result in selling
Holders of the Registrable Notes covered thereby or Participating Broker-Dealers
seeking to sell Exchange Notes not being able to sell such Registrable Notes or
such Exchange Notes during that period unless such action is required by
applicable law or permitted by this Agreement.

     (c) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or
(2) a Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period relating thereto from whom the Company has received
written notice that it will be a Participating Broker-Dealer in the Exchange
Offer, notify the selling Holders of Registrable Notes, or each such
Participating Broker-Dealer, as

<PAGE>

                                      -13-

the case may be, their counsel and the managing underwriters, if any, promptly
(but in any event within one day), and confirm such notice in writing, (i) when
a Prospectus or any Prospectus supplement or post-effective amendment has been
filed, and, with respect to a Registration Statement or any post-effective
amendment, when the same has become effective under the Securities Act
(including in such notice a written statement that any Holder may, upon request,
obtain, at the sole expense of the Issuers, one conformed copy of such
Registration Statement or post-effective amendment including financial
statements and schedules, documents incorporated or deemed to be incorporated by
reference and exhibits), (ii) of the issuance by the SEC of any stop order
suspending the effectiveness of a Registration Statement or of any order
preventing or suspending the use of any preliminary prospectus or the initiation
of any proceedings for that purpose, (iii) if at any time when a prospectus is
required by the Securities Act to be delivered in connection with sales of the
Registrable Notes or resales of Exchange Notes by Participating Broker-Dealers
the representations and warranties of the Issuers contained in any agreement
(including any underwriting agreement) contemplated by Section 5(m) hereof cease
to be true and correct in all material respects, (iv) of the receipt by any
Issuer of any notification with respect to the suspension of the qualification
or exemption from qualification of a Registration Statement or any of the
Registrable Notes or the Exchange Notes to be sold by any Participating
Broker-Dealer for offer or sale in any jurisdiction, or the initiation or
threatening of any proceeding for such purpose, (v) of the happening of any
event, the existence of any condition or any information becoming known that
makes any statement made in such Registration Statement or related Prospectus or
any document incorporated or deemed to be incorporated therein by reference
untrue in any material respect or that requires the making of any changes in or
amendments or supplements to such Registration Statement, Prospectus or
documents so that, in the case of the Registration Statement, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein
not misleading, and that in the case of the Prospectus, it will not contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading, and (vi) of the
Issuers' determination that a post-effective amendment to a Registration
Statement would be appropriate.

     (d) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or
(2) a Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period, use its best efforts to prevent the issuance of any order
suspending the effectiveness of a Registration Statement or of any order
preventing or suspending the use of a Prospectus or suspending the qualification
(or exemption from qualification) of any of the Registrable Notes or the
Exchange Notes to be sold by any Participating Broker-Dealer, for sale in any
jurisdiction, and, if any such order is issued, to use its best efforts to
obtain the withdrawal of any such order at the earliest possible moment.

<PAGE>

                                      -14-

     (e) If a Shelf Registration is filed pursuant to Section 3 and if requested
during the Effectiveness Period by the managing underwriter or underwriters (if
any), the Holders of a majority in aggregate principal amount of the Registrable
Notes being sold in connection with an underwritten offering or any
Participating Broker-Dealer, (i) as promptly as practicable incorporate in a
prospectus supplement or post-effective amendment such information as the
managing underwriter or underwriters (if any), such Holders, any Participating
Broker-Dealer or counsel for any of them reasonably request to be included
therein, (ii) make all required filings of such prospectus supplement or such
post-effective amendment as soon as practicable after an Issuer has received
notification of the matters to be incorporated in such prospectus supplement or
post-effective amendment, and (iii) supplement or make amendments to such
Registration Statement.

     (f) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or
(2) a Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period, furnish to each selling Holder of Registrable Notes and
to each such Participating Broker-Dealer who so requests and to their respective
counsel and each managing underwriter, if any, at the sole expense of the
Issuers, one conformed copy of the Registration Statement or Registration
Statements and each post-effective amendment thereto, including financial
statements and schedules, and, if requested, all documents incorporated or
deemed to be incorporated therein by reference and all exhibits.

     (g) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or
(2) a Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period, deliver to each selling Holder of Registrable Notes, or
each such Participating Broker-Dealer, as the case may be, their respective
counsel, and the underwriters, if any, at the sole expense of the Issuers, as
many copies of the Prospectus or Prospectuses (including each form of
preliminary prospectus) and each amendment or supplement thereto and any
documents incorporated by reference therein as such Persons may reasonably
request; and, subject to the last paragraph of this Section 5, the Issuers
hereby consent to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders of Registrable Notes or each such
Participating Broker-Dealer, as the case may be, and the underwriters or agents,
if any, and dealers (if any), in connection with the offering and sale of the
Registrable Notes covered by, or the sale by Participating Broker-Dealers of the
Exchange Notes pursuant to, such Prospectus and any amendment or supplement
thereto.

     (h) Prior to any public offering of Registrable Notes or any delivery of a
Prospectus contained in the Exchange Offer Registration Statement by any
Participating Broker-Dealer who seeks to sell Exchange Notes during the
Applicable Period, use its reasonable best efforts

<PAGE>

                                      -15-

to register or qualify, and to cooperate with the selling Holders of Registrable
Notes or each such Participating Broker-Dealer, as the case may be, the managing
underwriter or underwriters, if any, and their respective counsel in connection
with the registration or qualification (or exemption from such registration or
qualification) of such Registrable Notes for offer and sale under the securities
or Blue Sky laws of such jurisdictions within the United States as any selling
Holder, Participating Broker-Dealer, or the managing underwriter or underwriters
reasonably request in writing; provided, however, that where Exchange Notes held
by Participating Broker-Dealers or Registrable Notes are offered other than
through an underwritten offering, the Issuers agree to cause their counsel to
perform Blue Sky investigations and file registrations and qualifications
required to be filed pursuant to this Section 5(h), keep each such registration
or qualification (or exemption therefrom) effective during the period such
Registration Statement is required to be kept effective and do any and all other
acts or things reasonably necessary or advisable to enable the disposition in
such jurisdictions of the Exchange Notes held by Participating Broker-Dealers or
the Registrable Notes covered by the applicable Registration Statement;
provided, however, that no Issuer shall be required to (A) qualify generally to
do business in any jurisdiction where it is not then so qualified, (B) take any
action that would subject it to general service of process in any such
jurisdiction where it is not then so subject or (C) subject itself to taxation
in excess of a nominal dollar amount in any such jurisdiction where it is not
then so subject.

     (i) If a Shelf Registration is filed pursuant to Section 3 hereof,
cooperate with the selling Holders of Registrable Notes and the managing
underwriter or underwriters, if any, to facilitate the timely preparation and
delivery of certificates representing Registrable Notes to be sold, which
certificates shall not bear any restrictive legends and shall be in a form
eligible for deposit with The Depository Trust Company; and enable such
Registrable Notes to be in such denominations and registered in such names as
the managing underwriter or underwriters, if any, or Holders may request.

     (j) Use its reasonable best efforts to cause the Registrable Notes covered
by the Registration Statement to be registered with or approved by such other
governmental agencies or authorities as may be reasonably necessary to enable
the seller or sellers thereof or the underwriter or underwriters, if any, to
consummate the disposition of such Registrable Notes, except as may be required
solely as a consequence of the nature of such selling Holder's business, in
which case the Issuers will cooperate in all reasonable respects with the filing
of such Registration Statement and the granting of such approvals.

     (k) If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or
(2) a Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period, upon the occurrence of any event contemplated by
paragraph 5(c)(v) or 5(c)(vi) hereof, as promptly as practicable prepare and

<PAGE>

                                      -16-

(subject to Section 5(a) hereof) file with the SEC, at the sole expense of the
Issuers, a supplement or post-effective amendment to the Registration Statement
or a supplement to the related Prospectus or any document incorporated or deemed
to be incorporated therein by reference, or file any other required document so
that, as thereafter delivered to the purchasers of the Registrable Notes being
sold thereunder or to the purchasers of the Exchange Notes to whom such
Prospectus will be delivered by a Participating Broker-Dealer, any such
Prospectus will not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. Notwithstanding the foregoing, the Issuers shall not be required
to amend or supplement a Registration Statement, any related Prospectus or any
document incorporated therein by reference, in the event that, and for a period
not to exceed an aggregate of 60 days in any calendar year if, (i) an event
occurs and is continuing as a result of which the Shelf Registration would, in
the Company's good faith judgment, contain an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, and (ii) (a) the Company determines in its good faith judgment that
the disclosure of such event at such time would have a material adverse effect
on the business, operations or prospects of the Company or (b) the disclosure
otherwise relates to a pending material business transaction that has not yet
been publicly disclosed.

     (l)  Prior to the effective date of the first Registration Statement
relating to the Registrable Notes, (i) provide the Trustee with certificates for
the Registrable Notes in a form eligible for deposit with The Depository Trust
Company and (ii) provide a CUSIP number for the Registrable Notes.

     (m)  In connection with any underwritten offering of Registrable Notes
pursuant to a Shelf Registration, enter into an underwriting agreement as is
customary in underwritten offerings of debt securities similar to the Notes in
form and substance reasonably satisfactory to the Company and take all such
other actions as are reasonably requested by the managing underwriter or
underwriters in order to expedite or facilitate the registration or the
disposition of such Registrable Notes and, in such connection, (i) make such
representations and warranties to, and covenants with, the underwriters with
respect to the business of the Company and the subsidiaries of the Company
(including any acquired business, properties or entity, if applicable) and the
Registration Statement, Prospectus and documents, if any, incorporated or deemed
to be incorporated by reference therein, in each case, as are customarily made
by issuers to underwriters in underwritten offerings of debt securities similar
to the Notes, and confirm the same in writing if and when requested in form and
substance reasonably satisfactory to the Company; (ii) obtain the written
opinions of counsel to the Company and written up dates thereof in form, scope
and substance reasonably satisfactory to the managing underwriter or
underwriters, addressed to the underwriters covering the matters customarily
covered in opinions reasonably requested in underwritten offerings of debt
securities similar to the Notes and

<PAGE>

                                      -17-

such other matters as may be reasonably requested by the managing underwriter or
underwriters; (iii) use its best efforts to obtain "cold comfort" letters and
updates thereof in form, scope and substance reasonably satisfactory to the
managing underwriter or underwriters from the independent public accountants of
the Company (and, if necessary, any other independent public accountants of the
Company, any subsidiary of the Company or of any business acquired by the
Company for which financial statements and financial data are, or are required
to be, included or incorporated by reference in the Registration Statement),
addressed to each of the underwriters, such letters to be in customary form and
covering matters of the type customarily covered in "cold comfort" letters in
connection with underwritten offerings of debt securities similar to the Notes
and such other matters as reasonably requested by the managing underwriter or
underwriters as permitted by the Statement on Auditing Standards No. 72; and
(iv) if an underwriting agreement is entered into, the same shall contain
indemnification provisions and procedures no less favorable to the sellers and
underwriters, if any, than those set forth in Section 7 hereof (or such other
provisions and procedures acceptable to Holders of a majority in aggregate
principal amount of Registrable Notes covered by such Registration Statement and
the managing underwriter or underwriters or agents, if any). The above shall be
done at each closing under such underwriting agreement, or as and to the extent
required thereunder.

     (n)  If (1) a Shelf Registration is filed pursuant to Section 3 hereof, or
(2) a Prospectus contained in the Exchange Offer Registration Statement filed
pursuant to Section 2 hereof is required to be delivered under the Securities
Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during
the Applicable Period, make available for inspection by any selling Holder of
such Registrable Notes being sold, or each such Participating Broker-Dealer, as
the case may be, any underwriter participating in any such disposition of
Registrable Notes, if any, and any attorney, accountant or other agent retained
by any such selling Holder or each such Participating Broker-Dealer, as the case
may be, or underwriter (collectively, the "Inspectors"), at the offices where
normally kept, during reasonable business hours, all financial and other
records, pertinent corporate documents and instruments of the Company and
subsidiaries of the Company (collectively, the "Records") as shall be reasonably
necessary to enable them to exercise any applicable due diligence
responsibilities, and cause the officers, directors and employees of the Company
and any of its subsidiaries to supply all information reasonably requested by
any such Inspector in connection with such Registration Statement and
Prospectus. Each Inspector shall agree in writing that it will keep the Records
confidential and that it will not disclose any of the Records that the Company
determines, in good faith, to be confidential and notifies the Inspectors in
writing are confidential unless (i) the disclosure of such Records is necessary
to avoid or correct a material misstatement or material omission in such
Registration Statement or Prospectus, (ii) the release of such Records is
ordered pursuant to a subpoena or other order from a court of competent
jurisdiction, or (iii) the information in such Records has been made generally
available to the public other than by an Inspector or an "affiliate" (as defined
in Rule 405) thereof; provided, however, that prior notice shall be provided as
soon as practicable to the Company of the potential disclosure of any
information by such

<PAGE>

                                      -18-

Inspector pursuant to clauses (i), or (ii) of this sentence to permit the
Company to obtain a protective order (or waive the provisions of this paragraph
(n)) and that such Inspector shall take such actions as are reasonably necessary
to protect the confidentiality of such information (if practicable) to the
extent such action is otherwise not inconsistent with, an impairment of or in
derogation of the rights and interests of the Holder or any Inspector.

     (o)  Provide an indenture trustee for the Registrable Notes or the Exchange
Notes, as the case may be, and cause the Indenture or the trust indenture
provided for in Section 2(a) hereof, as the case may be, to be qualified under
the TIA not later than the effective date of the first Registration Statement
relating to the Registrable Notes; and in connection therewith, cooperate with
the trustee under any such indenture and the Holders of the Registrable Notes,
to effect such changes to such indenture as may be required for such indenture
to be so qualified in accordance with the terms of the TIA; and execute, and use
its best efforts to cause such trustee to execute, all documents as may be
required to effect such changes, and all other forms and documents required to
be filed with the SEC to enable such indenture to be so qualified in a timely
manner.

     (p)  Comply with all applicable rules and regulations of the SEC and make
generally available to its securityholders earnings statements satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or
any similar rule promulgated under the Securities Act) no later than 60 days
after the end of any fiscal quarter (or 120 days after the end of any 12-month
period if such period is a fiscal year) (i) commencing at the end of any fiscal
quarter in which Registrable Notes are sold to underwriters in a firm commitment
or best efforts underwritten offering and (ii) if not sold to underwriters in
such an offering, commencing on the first day of the first fiscal quarter of the
Company after the effective date of a Registration Statement, which statements
shall cover said 12-month periods.

     (q)  Upon consummation of the Exchange Offer or a Private Exchange, obtain
an opinion of counsel to the Company, in a form customary for underwritten
transactions, addressed to the Trustee for the benefit of all Holders of
Registrable Notes participating in the Exchange Offer or the Private Exchange,
as the case may be, that the Exchange Notes or Private Exchange Notes, as the
case may be, the related guarantees and the related indenture constitute legal,
valid and binding obligations of the Issuers, enforceable against them in
accordance with their respective terms, subject to customary exceptions and
qualifications.

     (r)  If the Exchange Offer or a Private Exchange is to be consummated, upon
delivery of the Registrable Notes by Holders to the Company (or to such other
Person as directed by the Issuer) in exchange for the Exchange Notes or the
Private Exchange Notes, as the case may be, the Company shall mark, or cause to
be marked, on such Registrable Notes that such Registrable Notes are being
cancelled in exchange for the Exchange Notes or the Private Exchange Notes, as
the case may be; in no event shall such Registrable Notes be marked as paid or
otherwise satisfied.

<PAGE>

                                      -19-

     (s)  Cooperate with each seller of Registrable Notes covered by any
Registration Statement and each underwriter, if any, participating in the
disposition of such Registrable Notes and their respective counsel in connection
with any filings required to be made with the National Association of Securities
Dealers, Inc. (the "NASD").

     (t)  Use its reasonable best efforts to take all other steps reasonably
necessary to effect the registration of the Exchange Notes and/or Registrable
Notes covered by a Registration Statement contemplated hereby.

               The Company may require each seller of Registrable Notes as to
which any registration is being effected to furnish to the Company such
information regarding such seller and the distribution of such Registrable Notes
as the Company may, from time to time, reasonably request. The Company may
exclude from such registration the Registrable Notes of any seller so long as
such seller fails to furnish such information within a reasonable time after
receiving such request. Each seller as to which any Shelf Registration is being
effected agrees to furnish promptly to the Company all information required to
be disclosed in order to make the information previously furnished to the
Company by such seller not materially misleading.

               If any such Registration Statement refers to any Holder by name
or otherwise as the holder of any securities of the Company, then such Holder
shall have the right to require (i) the insertion therein of language, in form
and substance reasonably satisfactory to such Holder, to the effect that the
holding by such Holder of such securities is not to be construed as a
recommendation by such Holder of the investment quality of the securities
covered thereby and that such holding does not imply that such Holder will
assist in meeting any future financial requirements of the Company, or (ii) in
the event that such reference to such Holder by name or otherwise is not
required by the Securities Act or any similar federal statute then in force, the
deletion of the reference to such Holder in any amendment or supplement to the
Registration Statement filed or prepared subsequent to the time that such
reference ceases to be required.

               Each Holder of Registrable Notes and each Participating
Broker-Dealer agrees by its acquisition of such Registrable Notes or Exchange
Notes to be sold by such Participating Broker-Dealer, as the case may be, that,
upon actual receipt of any notice from the Company of the happening of any event
of the kind described in Section 5(c)(ii), 5(c)(iv), 5(c)(v), or 5(c)(vi)
hereof, such Holder will forthwith discontinue disposition of such Registrable
Notes covered by such Registration Statement or Prospectus or Exchange Notes to
be sold by such Holder or Participating Broker-Dealer, as the case may be, until
such Holder's or Participating Broker-Dealer's receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 5(k) hereof, or until
it is advised in writing (the "Advice") by the Company that the use of the
applicable Prospectus may be resumed, and has received copies of any amendments
or supplements thereto. In the event that the Company shall give any such
notice, the Applicable Period shall be extended by the number of days during
such periods from and

<PAGE>

                                      -20-

including the date of the giving of such notice to and including the date when
each seller of Registrable Notes covered by such Registration Statement or
Exchange Notes to be sold by such Participating Broker-Dealer, as the case may
be, shall have received (x) the copies of the supplemented or amended Prospectus
contemplated by Section 5(k) hereof or (y) the Advice.

     6. Registration Expenses

          All fees and expenses incident to the performance of or compliance
with this Agreement by the Issuers (other than any underwriting discounts or
commissions) shall be borne by the Company whether or not the Exchange Offer
Registration Statement or any Shelf Registration is filed or becomes effective
or the Exchange Offer is consummated, including, without limitation, (i) all
registration and filing fees (including, without limitation, (A) fees with
respect to filings required to be made with the NASD in connection with an
underwritten offering and (B) fees and expenses of compliance with state
securities or Blue Sky laws (including, without limitation, fees and
disbursements of counsel in connection with Blue Sky qualifications of the
Registrable Notes or Exchange Notes and determination of the eligibility of the
Registrable Notes or Exchange Notes for investment under the laws of such
jurisdictions (x) where the holders of Registrable Notes are located, in the
case of the Exchange Notes, or (y) as provided in Section 5(h) hereof, in the
case of Registrable Notes or Exchange Notes to be sold by a Participating
Broker-Dealer during the Applicable Period)), (ii) printing expenses, including,
without limitation, expenses of printing certificates for Registrable Notes or
Exchange Notes in a form eligible for deposit with The Depository Trust Company
and of printing prospectuses if the printing of prospectuses is requested by the
managing underwriter or underwriters, if any, by the Holders of a majority in
aggregate principal amount of the Registrable Notes included in any Registration
Statement or in respect of Registrable Notes or Exchange Notes to be sold by any
Participating Broker-Dealer during the Applicable Period, as the case may be,
(iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of
counsel for the Company and reasonable fees and disbursements of one special
counsel for all of the sellers of Registrable Notes (exclusive of any counsel
retained pursuant to Section 7 hereof), (v) fees and disbursements of all
independent certified public accountants referred to in Section 5(m)(iii) hereof
(including, without limitation, the expenses of any special audit and "cold
comfort" letters required by or incident to such performance), (vi) Securities
Act liability insurance, if the Company desires such insurance, (vii) fees and
expenses of all other Persons retained by the Issuer, (viii) internal expenses
of the Company (including, without limitation, all salaries and expenses of
officers and employees of the Company performing legal or accounting duties),
(ix) the expense of any annual audit, (x) any fees and expenses incurred in
connection with the listing of the securities to be registered on any securities
exchange, and the obtaining of a rating of the securities, in each case, if
applicable, and (xi) the expenses relating to printing, word processing and
distributing all Registration Statements, underwriting agreements, indentures
and any other documents necessary in order to comply with this Agreement.

<PAGE>

                                      -21-

     7. Indemnification

          (a)  Each of the Issuers, jointly and severally, agrees to indemnify
and hold harmless each Holder of Registrable Notes and each Participating
Broker-Dealer selling Exchange Notes during the Applicable Period, the
affiliates, officers, directors, representatives, employees and agents of each
such Person, and each Person, if any, who controls any such Person within the
meaning of either Section 15 of the Securities Act or Section 20 of the Exchange
Act (each, a "Participant"), from and against any and all losses, claims,
damages, judgments, liabilities and expenses (including, without limitation, the
reasonable legal fees and other expenses actually incurred in connection with
any suit, action or proceeding or any claim asserted) caused by, arising out of
or based upon any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement (or any amendment thereto) or
Prospectus (as amended or supplemented if the Company shall have furnished any
amendments or supplements thereto) or any preliminary prospectus, or caused by,
arising out of or based upon any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein, in the case of the Prospectus in light of the circumstances under which
they were made, not misleading; provided, however, that the Issuers will not be
required to indemnify a Participant if (i) such losses, claims, damages or
liabilities are caused by any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with information
relating to any Participant furnished to the Company in writing by or on behalf
of such Participant expressly for use therein or (ii) if such Participant sold
to the Person asserting the claim the Registrable Notes or Exchange Notes that
are the subject of such claim and such untrue statement or omission or alleged
untrue statement or omission was contained or made in or omitted from any
preliminary prospectus and corrected in the Prospectus or any amendment or
supplement thereto and the Prospectus does not contain any other untrue
statement or omission or alleged untrue statement or omission of a material fact
that was the subject matter of the related proceeding and such Participant
failed to deliver or provide a copy of the Prospectus (as amended or
supplemented) to such Person with or prior to the confirmation of the sale of
such Registrable Notes or Exchange Notes sold to such Person if required by
applicable law, unless such failure to deliver or provide a copy of the
Prospectus (as amended or supplemented) was a result of noncompliance by the
Company with Section 5 of this Agreement.

          (b)  Each Participant agrees, severally and not jointly, to indemnify
and hold harmless the Issuers, their respective affiliates officers, directors,
representatives, employees and agents of each Issuer and each Person who
controls each Issuer within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act to the same extent (but on a several, and not
joint, basis) as the foregoing indemnity from the Issuers to each Participant,
but only with reference to information relating to such Participant furnished to
the Company in writing by or on behalf of such Participant expressly for use in
any Registration Statement or Prospectus, any amendment or supplement thereto,
or any preliminary prospectus. The liabil-

<PAGE>

                                      -22-

ity of any Participant under this paragraph shall in no event exceed the
proceeds received by such Participant from sales of Registrable Notes or
Exchange Notes giving rise to such obligations.

          (c)  If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against
any Person in respect of which indemnity may be sought pursuant to either of the
two preceding paragraphs, such Person (the "Indemnified Person") shall promptly
notify the Persons against whom such indemnity may be sought (the "Indemnifying
Persons") in writing, and the Indemnifying Persons, upon request of the
Indemnified Person, shall retain counsel reasonably satisfactory to the
Indemnified Person to represent the Indemnified Person and any others the
Indemnifying Persons may reasonably designate in such proceeding and shall pay
the fees and expenses actually incurred by such counsel related to such
proceeding; provided, however, that the failure to so notify the Indemnifying
Persons (i) will not relieve them from any liability under paragraph (a) or (b)
above unless and to the extent such failure results in the forfeiture by the
Indemnifying Persons of substantial rights and defenses and (ii) will not, in
any event, relieve them from any obligations to any Indemnified Person other
than the indemnification obligation provided in paragraphs (a) and (b) above. In
any such proceeding, any Indemnified Person shall have the right to retain its
own counsel, but the fees and expenses of such counsel shall be at the expense
of such Indemnified Person unless (i) the Indemnifying Persons and the
Indemnified Person shall have mutually agreed in writing to the contrary, (ii)
the Indemnifying Persons shall have failed within a reasonable period of time to
retain counsel reasonably satisfactory to the Indemnified Person, (iii) the use
of counsel chosen by any Indemnifying Person to represent the Indemnified Person
would present such counsel with a conflict of interest or, (iv) the defendants
in any such action include both the Indemnified Person and any Indemnifying
Person and the Indemnified Person shall have been advised by counsel that there
may be one or more legal defenses available to it and/or other indemnified
parties that are different from or additional to those available to the
Indemnified Persons. It is understood that, the Indemnifying Persons shall not,
in connection with such proceeding or separate but substantially similar related
proceeding in the same jurisdiction arising out of the same general allegations,
be liable for the fees and expenses of more than one separate firm (in addition
to any local counsel) for all Indemnified Persons, and that all such fees and
expenses shall be reimbursed promptly as they are incurred. Any such separate
firm for the Participants and such control Persons of Participants shall be
designated in writing by Participants who sold a majority in interest of
Registrable Notes and Exchange Notes sold by all such Participants and shall be
reasonably acceptable to the Company, and any such separate firm for the
Issuers, their affiliates, officers, directors, representatives, employees and
agents and such control Persons of the Issuers shall be designated in writing by
the Issuers and shall be reasonably acceptable to the Holders.

          The Indemnifying Persons shall not be liable for any settlement of any
proceeding effected without their prior written consent (which consent shall not
be unreasonably

<PAGE>

                                      -23-

withheld or delayed), but if settled with such consent or if there be a final
non-appealable judgment for the plaintiff for which the Indemnified Person is
entitled to indemnification pursuant to this Agreement, each of the Indemnifying
Persons agrees to indemnify and hold harmless each Indemnified Person from and
against any loss or liability by reason of such settlement or judgment. No
Indemnifying Person shall, without the prior written consent of the Indemnified
Persons (which consent shall not be unreasonably withheld or delayed), effect
any settlement or compromise of any pending or threatened proceeding in respect
of which any Indemnified Person is or could have been a party, or indemnity
could have been sought hereunder by such Indemnified Person, unless such
settlement (A) includes an unconditional written release of such Indemnified
Person, in form and substance reasonably satisfactory to such Indemnified
Person, from all liability on claims that are the subject matter of such
proceeding and (B) does not include any statement as to an admission of fault,
culpability or failure to act by or on behalf of such Indemnified Person.

          (d)  If the indemnification provided for in paragraphs (a) and (b) of
this Section 7 is for any reason unavailable to, or insufficient to hold
harmless, an Indemnified Person in respect of any losses, claims, damages or
liabilities referred to therein, then each Indemnifying Person under such
paragraphs, in lieu of indemnifying such Indemnified Person thereunder and in
order to provide for just and equitable contribution, shall contribute to the
amount paid or payable by such Indemnified Person as a result of such losses,
claims, damages or liabilities in such proportion as is appropriate to reflect
(i) the relative benefits received by the Indemnifying Person or Persons on the
one hand and the Indemnified Person or Persons on the other from the offering of
the Notes or (ii) if the allocation provided by the foregoing clause (i) is not
permitted by applicable law, not only such relative benefits but also the
relative fault of the Indemnifying Person or Persons on the one hand and the
Indemnified Person or Persons on the other in connection with the statements or
omissions or alleged statements or omissions that resulted in such losses,
claims, damages or liabilities (or actions in respect thereof) as well as any
other relevant equitable considerations. The relative benefits received by the
Issuers on the one hand and the Participants on the other shall be deemed to be
in the same proportion as the total proceeds from the offering (net of discounts
and commissions but before deducting expenses) of the Notes received by the
Company bears to the total proceeds received by such Participant from the sale
of Registrable Notes or Exchange Notes, as the case may be. The relative fault
of the parties shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the
Issuers on the one hand or such Participant or such other Indemnified Person, as
the case may be, on the other, the parties' relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission,
and any other equitable considerations appropriate in the circumstances.

          (e)  The parties agree that it would not be just and equitable if
contribution pursuant to this Section 7 were determined by pro rata allocation
(even if the Participants were

<PAGE>

                                      -24-

treated as one entity for such purpose) or by any other method of allocation
that does not take account of the equitable considerations referred to in
paragraph (d) above. The amount paid or payable by an Indemnified Person as a
result of the losses, claims, damages, judgments, liabilities and expenses
referred to in paragraph (d) above shall be deemed to include, subject to the
limitations set forth above, any reasonable legal or other expenses actually
incurred by such Indemnified Person in connection with investigating or
defending any such action or claim. Notwithstanding the provisions of this
Section 7, in no event shall a Participant be required to contribute any amount
in excess of the amount by which proceeds received by such Participant from
sales of Registrable Notes or Exchange Notes, as the case may be, exceeds the
amount of any damages that such Participant has otherwise been required to pay
or has paid by reason of such untrue or alleged untrue statement or omission or
alleged omission. No Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

          (f)  Any losses, claims, damages, liabilities or expenses for which an
indemnified party is entitled to indemnification or contribution under this
Section 7 shall be paid by the Indemnifying Party to the Indemnified Party as
such losses, claims, damages, liabilities or expenses are incurred; provided
that all such amounts to which such Indemnified Person is not entitled pursuant
to this Section 7, as determined by a final non-appealable judicial
determination, shall be returned promptly to the relevant Indemnifying Persons
The indemnity and contribution agreements contained in this Section 7 and the
representations and warranties of the Issuers set forth in this Agreement shall
remain operative and in full force and effect, regardless of (i) any
investigation made by or on behalf of any Holder or any person who controls a
Holder, the Issuer, its directors, officers, employees or agents or any person
controlling the Issuer, and (ii) any termination of this Agreement.

          (g)  The indemnity and contribution agreements contained in this
Section 7 will be in addition to any liability which the Indemnifying Persons
may otherwise have to the Indemnified Persons referred to above.

     8. Rules 144 and 144A

          Each of the Issuers covenants and agrees that it will file the reports
required to be filed by it under the Securities Act and the Exchange Act and the
rules and regulations adopted by the SEC thereunder in a timely manner in
accordance with the requirements of the Securities Act and the Exchange Act and,
if at any time such Issuer is not required to file such reports, such Issuer
will, upon the request of any Holder or beneficial owner of Registrable Notes,
make available such information necessary to permit sales pursuant to Rule 144A
under the Securities Act. Each of the Issuers further covenants and agrees, for
so long as any Registrable Notes remain outstanding that it will take such
further action as any Holder of Registrable Notes may reasonably request, all to
the extent required from time to time to enable such

<PAGE>

                                      -25-

holder to sell Registrable Notes without registration under the Securities Act
within the limitation of the exemptions provided by (a) Rule 144(k) and Rule
144A under the Securities Act, as such Rules may be amended from time to time,
or (b) any similar rule or regulation hereafter adopted by the SEC.

     9. Underwritten Registrations

          If any of the Registrable Notes covered by any Shelf Registration are
to be sold in an underwritten offering, the investment banker or investment
bankers and manager or managers that will manage the offering will be selected
by the Holders of a majority in aggregate principal amount of such Registrable
Notes included in such offering and shall be reasonably acceptable to the
Issuer.

          No Holder of Registrable Notes may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder's
Registrable Notes on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such
underwriting arrangements.

     10. Miscellaneous

          (a)  No Inconsistent Agreements. The Issuers have not, as of the date
hereof, and the Issuers shall not, after the date of this Agreement, enter into
any agreement with respect to any of its securities that is inconsistent with
the rights granted to the Holders of Registrable Notes in this Agreement or
otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of the Issuers' other issued and outstanding
securities under any such agreements. The Issuers will not enter into any
agreement with respect to any of its securities which will grant to any Person
piggy-back registration rights with respect to any Registration Statement.

          (b)  Adjustments Affecting Registrable Notes. The Issuers shall not,
directly or indirectly, take any action with respect to the Registrable Notes as
a class that would adversely affect the ability of the Holders of Registrable
Notes to include such Registrable Notes in a registration undertaken pursuant to
this Agreement.

          (c)  Amendments and Waivers. The provisions of this Agreement may not
be amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, otherwise than with the prior written
consent of (I) the Company and (II)(A) the Holders of not less than a majority
in aggregate principal amount of the then outstanding Registrable Notes and (B)
in circumstances that would adversely affect the

<PAGE>

                                      -26-

Participating Broker-Dealers, the Participating Broker-Dealers holding not less
than a majority in aggregate principal amount of the Exchange Notes held by all
Participating Broker-Dealers; provided, however, that Section 7 and this Section
10(c) may not be amended, modified or supplemented without the prior written
consent of each Holder and each Participating Broker-Dealer (including any
person who was a Holder or Participating Broker-Dealer of Registrable Notes or
Exchange Notes, as the case may be, disposed of pursuant to any Registration
Statement) affected by any such amendment, modification or supplement.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of
Holders of Registrable Notes whose securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect, impair,
limit or compromise the rights of other Holders of Registrable Notes may be
given by Holders of at least a majority in aggregate principal amount of the
Registrable Notes being sold pursuant to such Registration Statement.

          (d)  Notices. All notices and other communications (including, without
limitation, any notices or other communications to the Trustee) provided for or
permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, next-day air courier or facsimile:

                    (i)      if to a Holder of the Registrable Notes or any
                    Participating Broker-Dealer, at the most current address of
                    such Holder or Participating Broker-Dealer, as the case may
                    be, set forth on the records of the registrar under the
                    Indenture.

                    (ii)     if to the Issuers, at the address as follows:

                        c/o    Magnum Hunter Resources, Inc.
                               600 East Las Colinas Blvd.
                               Suite 1100
                               Irving, Texas 75039

                               Facsimile No.:  (972) 401-3110
                               Attention:  Chief Executive Officer

          All such notices and communications shall be deemed to have been duly
given: when delivered by hand, if personally delivered; five business days after
being deposited in the mail, postage prepaid, if mailed; one business day after
being timely delivered to a next-day air courier; and when receipt is
acknowledged by the addressee, if sent by facsimile.

          Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address and in the manner specified in such Indenture.

<PAGE>

                                      -27-

          (e)  Successors and Assigns. This Agreement shall inure to the benefit
of and be binding upon the successors and assigns of each of the parties hereto,
the Holders and the Participating Broker-Dealers; provided, however, that
nothing herein shall be deemed to permit any assignment, transfer or other
disposition of Registrable Notes in violation of the terms of the Purchase
Agreement or the Indenture.

          (f)  Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

          (g)  Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

          (h)  Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS
MADE AND PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO
THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.

          (i)  Severability. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their best efforts to find and employ an alternative means to
achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared
to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that
may be hereafter declared invalid, illegal, void or unenforceable.

          (j)  Securities Held by the Company or Its Affiliates. Whenever the
consent or approval of Holders of a specified percentage of Registrable Notes is
required hereunder, Registrable Notes held by the Company or its affiliates (as
such term is defined in Rule 405 under the Securities Act) shall not be counted
in determining whether such consent or approval was given by the Holders of such
required percentage.

          (k)  Third-Party Beneficiaries. Holders of Registrable Notes and
Participating Broker-Dealers are intended third party beneficiaries of this
Agreement, and this Agreement may be enforced by such Persons.

<PAGE>

                                      -28-

          (l) Entire Agreement. This Agreement, together with the Purchase
Agreement and the Indenture, is intended by the parties as a final and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein and therein and any and all prior oral or
written agreements, representations, or warranties, contracts, understandings,
correspondence, conversations and memoranda between the Holders on the one hand
and the Issuers on the other, or between or among any agents, representatives,
parents, subsidiaries, affiliates, predecessors in interest or successors in
interest with respect to the subject matter hereof and thereof are merged herein
and replaced hereby.

<PAGE>

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

                                    MAGNUM HUNTER RESOURCES, INC.

                                    By:   /s/ Morgan F. Johnston
                                        _______________________________________
                                           Name:  Morgan F. Johnston
                                           Title: Vice President, General
                                                  Counsel and Secretary

                                    MAGNUM HUNTER PRODUCTION, INC., as
                                           Guarantor

                                    By:   /s/ Morgan F. Johnston
                                        _______________________________________
                                           Name:  Morgan F. Johnston
                                           Title: Vice President, General
                                                  Counsel and Secretary

                                    GRUY PETROLEUM MANAGEMENT CO., as
                                           Guarantor

                                    By:   /s/ Morgan F. Johnston
                                        _______________________________________
                                           Name:  Morgan F. Johnston
                                           Title: Vice President, General
                                                  Counsel and Secretary

                                    HUNTER GAS GATHERING, INC., as
                                           Guarantor

                                    By:   /s/ Morgan F. Johnston
                                        _______________________________________
                                           Name:  Morgan F. Johnston
                                           Title: Vice President, General
                                                  Counsel and Secretary

                                    TRAPMAR PROPERTIES, INC., as
                                           Guarantor

                                    By:   /s/ Morgan F. Johnston
                                        _______________________________________
                                           Name:  Morgan F. Johnston
                                           Title: Vice President, General
                                                  Counsel and Secretary

<PAGE>

                                      -30-

                                      CONMAG ENERGY CORPORATION, as
                                          Guarantor

                                      By:  /s/ Morgan F. Johnston
                                          _____________________________________
                                          Name:  Morgan F. Johnston
                                          Title: Vice President, General
                                                 Counsel and Secretary

                                      PINTAIL ENERGY, INC., as Guarantor

                                      By:  /s/ Morgan F. Johnston
                                          _____________________________________
                                          Name:  Morgan F. Johnston
                                          Title: Vice President, General
                                                 Counsel and Secretary

                                      PRIZE OPERATING COMPANY, as Guarantor

                                      By:  /s/ Morgan F. Johnston
                                          _____________________________________
                                          Name:  Morgan F. Johnston
                                          Title: Vice President, General
                                                 Counsel and Secretary

                                      PEC (DELAWARE), INC., as Guarantor

                                      By:  /s/ Morgan F. Johnston
                                          _____________________________________
                                          Name:  Morgan F. Johnston
                                          Title: Vice President, General
                                                 Counsel and Secretary

                                      PRIZE ENERGY RESOURCES, L.P. as Guarantor

                                      By: Prize Operating Company,
                                             its General Partner

                                      By:  /s/ Morgan F. Johnston
                                          _____________________________________
                                          Name:  Morgan F. Johnston
                                          Title: Vice President, General
                                                 Counsel and Secretary

<PAGE>

                                      -31-

                                            OKLAHOMA GAS PROCESSING, INC., as
                                            Guarantor

                                            By:   /s/ Morgan F. Johnston
                                                 ______________________________
                                                 Name:  Morgan F. Johnston
                                                 Title: Vice President, General
                                                        Counsel and Secretary

<PAGE>

                                      -32-

The foregoing Agreement is hereby
confirmed and accepted as of the date
first above written.

DEUTSCHE BANC ALEX. BROWN INC.
LEHMAN BROTHERS INC.
CIBC WORLD MARKETS CORP.
BNP PARIBAS SECURITIES CORP.
SWS SECURITIES, INC.
MONNESS, CRESPI, HARDT & CO., INC.
RBC DOMINION SECURITIES CORPORATION
SAN JACINTO SECURITIES, INC.
FROST SECURITIES, INC.
RYAN BECK & CO., LLC
HARTSFIELD CAPITAL SECURITIES, INC.

By:  Deutsche Banc Alex. Brown Inc.

By:   /s/ Carl Mayer
      _______________________________
      Name:   Carl Mayer
      Title:  Managing Director

By:   /s/ Mark Fedorcik
      _______________________________
      Name:   Mark Fedorcik
      Title:  Director<PAGE>

                                                                     EXHIBIT 4.4

                          MAGNUM HUNTER RESOURCES, INC.

                                  $300,000,000

                           9.60% Senior Notes due 2012

                               PURCHASE AGREEMENT

                                                                  March 13, 2002

DEUTSCHE BANC ALEX. BROWN INC.
LEHMAN BROTHERS INC.
CIBC WORLD MARKETS CORP.
BNP PARIBAS SECURITIES CORP.
SWS SECURITIES, INC.
MONNESS, CRESPI, HARDT & CO., INC.
RBC DOMINION SECURITIES CORPORATION
SAN JACINTO SECURITIES, INC.
FROST SECURITIES, INC.
RYAN BECK & CO., LLC
HARTSFIELD CAPITAL SECURITIES, INC.

c/o Deutsche Banc Alex. Brown Inc.
    31 West 52nd Street
    New York, New York 10019

Ladies and Gentlemen:

          Magnum Hunter Resources, Inc. (the "Company"), a Nevada corporation,
hereby confirms its agreement with you (the "Initial Purchasers"), as set forth
below.

<PAGE>

                                       -2-

     1. The Securities. Subject to the terms and conditions herein contained,
     the Company proposes to issue and sell to the Initial Purchasers
     $300,000,000 aggregate principal amount of the Company's 9.60% Senior Notes
     due 2012 (the "Notes"). The Notes will be issued pursuant to an indenture
     (the "Indenture"), to be dated the Closing Date (as defined herein), by and
     among the Company, the Guarantors (as defined below) and Bankers Trust
     Company, as trustee (the "Trustee"). The Company's obligations under the
     Notes and the Indenture will be unconditionally guaranteed pursuant to the
     terms of the Indenture (the "Guarantees") on an unsecured senior basis by
     each of the entities listed on Schedule II hereto (each, a "Guarantor" and
     collectively, the "Guarantors") and each of the entities listed on Schedule
     III hereto (the "Additional Guarantors"), which Additional Guarantors will
     become subsidiaries of the Company on the Closing Date. Each of the
     Additional Guarantors will execute an instrument in substantially the form
     attached hereto as Exhibit A (the "Joinder Agreement") pursuant to which
     each of such entities will become a party to this Agreement as a Guarantor.
     Prior to the execution of the Joinder Agreement by each of the entities
     listed on Schedule III hereto, the term "Guarantors" as used herein shall
     refer to all of the subsidiaries listed on Schedule II hereto. Following
     the execution of the Joinder Agreement on the Closing Date by each of the
     entities listed on Schedule III hereto, the term "Guarantors" as used
     herein shall include all of the entities listed on Schedules II and III
     hereto. The Notes and the Guarantees are collectively referred to herein as
     the "Securities."

          The Securities will be offered and sold to you without being
registered under the Securities Act of 1933, as amended (the "Act"), in reliance
on exemptions therefrom.

          In connection with the sale of the Securities, the Company has
prepared a preliminary offering memorandum dated February 28, 2002 (the
"Preliminary Memorandum") and a final offering memorandum dated March 13, 2002
(the "Final Memorandum," the Preliminary Memorandum and the Final Memorandum
each herein being referred to as a "Memorandum") setting forth or including a
description of the terms of the Securities, the terms of the offering of the
Securities, a description of the Company and any material developments relating
to the Company occurring after the date of the most recent historical financial
statements included therein. Unless otherwise indicated, all references herein
to the Preliminary Memorandum or the Final Memorandum shall be deemed to include
any documents filed under the Securities Exchange Act of 1934, as amended, and
the rules and regulations thereunder (the "Exchange Act") which are incorporated
by reference therein. As used herein, the term "Incorporated Documents" means
the documents which at the time are incorporated by reference in the Preliminary
Offering Memorandum or the Final Memorandum or any amendment or supplement
thereto.

          The Initial Purchasers and their direct and indirect transferees of
the Securities will be entitled to the benefits of the Registration Rights
Agreement, substantially in the form

<PAGE>

                                       -3-

attached hereto as Exhibit B (the "Registration Rights Agreement"), pursuant to
which the Company and the Guarantors have agreed, among other things, to file a
registration statement (the "Registration Statement") with the Securities and
Exchange Commission (the "Commission") registering the Exchange Notes (as
defined in the Registration Rights Agreement) under the Act. This Agreement, the
Notes, the Exchange Notes, the Private Exchange Notes (as defined in the
Registration Rights Agreement), the Guarantees, the Indenture and the
Registration Rights Agreement are hereinafter sometimes referred to collectively
as the "Note Documents."

          The Securities are being offered in connection with (i) the execution
by the Company of an amended and restated credit agreement (the "Credit
Agreement") on the Closing Date (as defined in below) with Bankers Trust
Company, as the administrative agent, and the execution by the Guarantors of an
amended and restated subsidiary guaranty agreement relating to the Credit
Agreement (the "Guaranty Agreement") on the Closing Date and (ii) the
consummation of the merger contemplated by that certain Merger Agreement, dated
as of December 17, 2001, (as amended from time to time, the "Merger Agreement"),
by and among the Company, Pintail Energy, Inc. and Prize Energy Corp. ("Prize"),
pursuant to which Prize will, upon the terms and subject to the conditions set
forth therein, merge with and into Pintail Energy, Inc. (the "Merger").

          The offering of the Notes, the entering into and borrowing under the
Credit Agreement and the guarantee thereof pursuant to the Guaranty Agreement
and the consummation of the Merger are collectively referred to as the
"Transactions." The Note Documents, the Credit Agreement, the Guaranty Agreement
and the Merger Agreement are collectively referred to herein as the "Transaction
Documents."

     2. Representations and Warranties of the Company. The Company and each of
     the Guarantors, jointly and severally, represents and warrants to and
     agrees with each of the Initial Purchasers that:

          (a) Neither the Preliminary Memorandum as of the date thereof nor the
Final Memorandum nor any amendment or supplement thereto as of the date thereof
and at all times subsequent thereto up to and on the Closing Date contained or
contains any untrue statement of a material fact or omitted or omits to state a
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, except that the
representations and warranties set forth in this Section 2(a) do not apply to
statements or omissions made in reliance upon and in conformity with information
relating to any of the Initial Purchasers furnished to the Company in writing by
the Initial Purchasers expressly for use in the Preliminary Memorandum, the
Final Memorandum or any amendment or supplement thereto.

<PAGE>

                                       -4-

          (b) The Incorporated Documents, to the extent filed by the Company
(the "Company Incorporated Documents") heretofore filed were filed in a timely
manner and, when they were filed (or, if any amendment with respect to any such
document was filed, when such amendment was filed) conformed in all material
respects to the requirements of the Exchange Act and did not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading; and
any further Company Incorporated Documents will, when so filed, be filed in a
timely manner and conform in all material respects to the requirements of the
Exchange Act and will not contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading.

          To the knowledge of the Company, the Incorporated Documents, to the
     extent filed by Prize, heretofore filed were filed in a timely manner and,
     when they were filed (or, if any amendment with respect to any such
     document was filed, when such amendment was filed) conformed in all
     material respects to the requirements of the Exchange Act and did not
     contain an untrue statement of a material fact or omit to state a material
     fact required to be stated therein or necessary to make the statements
     therein not misleading.

          (c) All of the outstanding shares of capital stock of the Company and
each of its Subsidiaries (as defined below) have been, and as of the Closing
Date will be, duly authorized and validly issued, are fully paid and
nonassessable and were not issued in violation of any preemptive or similar
rights; as of the Closing Date, all of the outstanding shares of capital stock
of the Subsidiaries will be free and clear of all liens, encumbrances, equities
and claims or restrictions on transferability (other than those imposed by the
Act and the securities or "Blue Sky" laws of certain jurisdictions and other
than the security interests granted to the agent for the benefit of the lenders
under the Credit Agreement) or voting. Attached as Schedule IV is a true and
complete list of each entity in which the Company has a direct or indirect
majority equity or voting interest, their jurisdictions of incorporation or
formation, their equity holders and percentage equity ownership by the Company.
Prior to the consummation of the Merger, the term "Subsidiaries" as used herein
shall refer to all of the subsidiaries listed on Schedule IV hereto. Following
consummation of the Merger, the term "Subsidiaries" as used herein shall refer
to all of the subsidiaries listed on Schedule IV hereto and all of the entities
listed on Schedule III hereto. Except as set forth on Schedule V hereto and in
the Final Memorandum, there are no (i) options, warrants or other rights to
purchase, (ii) agreements or other obligations to issue or (iii) other rights to
convert any obligation into, or exchange any securities for, shares of capital
stock of or ownership interests in the Company or any of the Subsidiaries
outstanding. Except for the Company's direct and indirect interests in the
Subsidiaries and as set forth on Schedule V hereto, the Company does not own,
directly or indirectly, any shares of capital stock or any other equity or
long-term debt securities or have any equity interest in any firm, partnership,
joint venture or other entity.

<PAGE>

                                       -5-

          (d) Each of the Company and the Guarantors is duly organized, validly
existing and in good standing under the laws of its jurisdiction of organization
and has all requisite corporate or partnership power and authority to own its
properties and conduct its business as now conducted and as described in the
Final Memorandum; each of the Company and the Subsidiaries is duly qualified to
do business and is in good standing in all other jurisdictions where the
ownership or leasing of its properties or the conduct of its business requires
such qualification, except where the failure to be so qualified would not,
individually or in the aggregate, have a material adverse effect on the
management, business, condition (financial or otherwise), prospects or results
of operations of the Company and the Subsidiaries, taken as a whole (any such
event, a "Material Adverse Effect").

          (e) The Company has all requisite corporate power and authority to
execute, deliver and perform each of its obligations under the Notes, the
Exchange Notes, the Private Exchange Notes. The Notes, when issued, will be in
the form contemplated by the Indenture. The Notes, the Exchange Notes and the
Private Exchange Notes have each been duly and validly authorized by the Company
and (assuming the due authorization, execution and delivery of the Indenture by
the Trustee), when executed by the Company and authenticated by the Trustee in
accordance with the provisions of the Indenture and, in the case of the Notes,
when delivered to and paid for by the Initial Purchasers in accordance with the
terms of this Agreement, will have been duly executed, issued and delivered and
will constitute valid and legally binding obligations of the Company, entitled
to the benefits of the Indenture, and enforceable against the Company in
accordance with their terms, except that the enforcement thereof may be subject
to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium
or other similar laws now or hereafter in effect relating to creditors' rights
generally, and (ii) general principles of equity and the discretion of the court
before which any proceeding therefor may be brought (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

          (f) Each of the Guarantors has all requisite corporate or partnership
power and authority to execute, deliver and perform each of its obligations
under the Guarantees. The Guarantees have been duly and validly authorized by
each Guarantor, and (assuming due authorization, execution and delivery of the
Indenture by the Trustee) when executed and delivered by such Guarantor, will
have been duly executed and delivered and will constitute the valid and legally
binding obligations of such Guarantor, entitled to the benefits of the
Indenture, enforceable against each of them in accordance with their terms,
except that the enforcement thereof may be subject to (i) bankruptcy,
insolvency, reorganization, fraudulent conveyance, moratorium or other similar
laws now or hereafter in effect relating to creditors' rights generally and (ii)
general principles of equity and the discretion of the court before which any
proceeding therefor may be brought (regardless of whether such enforcement is
considered in a proceeding in equity or at law).

<PAGE>

                                      -6-

          (g) Each of the Company and the Guarantors has all requisite corporate
or partnership power and authority to execute, deliver and perform its
obligations under the Indenture. The Indenture meets the requirements for
qualification under the Trust Indenture Act of 1939, as amended (the "TIA"). The
Indenture has been duly and validly authorized by each of the Company and the
Guarantors and, when executed and delivered in accordance with its terms
(assuming the due authorization, execution and delivery by the Trustee), will
have been duly executed and delivered and will constitute a valid and legally
binding agreement of each of the Company and the Guarantors, enforceable against
each of them in accordance with its terms, except that the enforcement thereof
may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or
other similar laws now or hereafter in effect relating to creditors' rights
generally and (ii) general principles of equity and the discretion of the court
before which any proceeding therefor may be brought (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

          (h) Each of the Company and the Guarantors has all requisite corporate
or partnership power and authority to execute, deliver and perform its
obligations under the Registration Rights Agreement. The Registration Rights
Agreement has been duly and validly authorized by each of the Company and the
Guarantors and, when executed and delivered by the Company and each of the
Guarantors (assuming due authorization, execution and delivery by the other
parties thereto), will have been duly executed and delivered and will constitute
a valid and legally binding agreement of each of the Company and the Guarantors,
enforceable against each of them in accordance with its terms, except that (A)
the enforcement thereof may be subject to (i) bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or other similar laws now or
hereafter in effect relating to creditors' rights generally and (ii) general
principles of equity and the discretion of the court before which any proceeding
therefor may be brought (regardless of whether such enforcement is considered in
a proceeding in equity or at law) and (B) any rights to indemnity or
contribution thereunder may be limited by federal and state securities laws and
public policy considerations.

          (i) Each of the Company and the Guarantors has all requisite corporate
or partnership power and authority to execute, deliver and perform its
obligations under this Agreement and to consummate the transactions contemplated
hereby. This Agreement and the consummation by the Company and the Guarantors of
the transactions contemplated hereby have been duly and validly authorized by
each of the Company and the Guarantors. This Agreement has been duly executed
and delivered by each of the Company and the Guarantors.

          (j) The Company has all requisite corporate power and authority to
execute, deliver and perform its obligations under the Credit Agreement. Each
Guarantor has all requisite corporate or partnership power and authority to
execute, deliver and perform its obligations under the Guaranty Agreement. The
Credit Agreement and the Guaranty Agreement have been duly and validly
authorized by each of the Company and the Guarantors, to the ex-

<PAGE>

                                      -7-

tent a party thereto, and, when executed and delivered by the Company and each
of the Guarantors, to the extent a party thereto (assuming due authorization,
execution and delivery by the other parties thereto), will have been duly
executed and delivered and will constitute valid and legally binding agreements
of each of the Company and the Guarantors, to the extent a party thereto,
enforceable against each of them in accordance with their terms, except that the
enforcement thereof may be subject to (i) bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or other similar laws now or
hereafter in effect relating to creditors' rights generally and (ii) general
principles of equity and the discretion of the court before which any proceeding
therefor may be brought (regardless of whether such enforcement is considered in
a proceeding in equity or at law).

          (k) Assuming the accuracy of the representations of the Initial
Purchasers in Section 8, no consent, approval, authorization or order of any
court or governmental agency or body, or third party is required for the
issuance and sale by the Company and the Guarantors of the Securities to the
Initial Purchasers or the consummation by them of the other Transactions, except
such as have been obtained and such as may be required under state securities or
"Blue Sky" laws in connection with the purchase and resale of the Securities by
the Initial Purchasers and except (with respect to the Merger) as disclosed in
the Merger Agreement or the disclosure schedules relating thereto. Neither the
Company nor any of the Subsidiaries is (i) in violation of its certificate of
incorporation or bylaws or similar organizational documents, (ii) in breach or
violation of any statute, judgment, decree, order, rule or regulation applicable
to any of them or any of their respective properties or assets, except for any
such breach or violation which would not, individually or in the aggregate, have
a Material Adverse Effect, or (iii) in breach of or default under (nor has any
event occurred which, with notice or passage of time or both, would constitute a
default under) or in violation of any of the terms or provisions of any
indenture, mortgage, deed of trust, loan agreement, note, lease, license,
franchise agreement, permit, certificate, contract or other agreement or
instrument to which any of them is a party or to which their respective
properties or assets are subject (collectively, "Contracts"), except for any
such breach, default, violation or event which would not, individually or in the
aggregate, have a Material Adverse Effect.

          (l) The execution, delivery and performance by the Company and the
Guarantors of the Transaction Documents (to the extent a party thereto) and the
consummation of the Transactions, and the fulfillment of the terms hereof and
thereof, will not conflict with or constitute or result in a breach of or a
default under (or an event which with notice or passage of time or both would
constitute a default under) or violation of or cause an acceleration of any
obligation under, or result in the imposition or creation of (or the obligation
to create or impose) a lien, charge, encumbrance or restriction (except liens
securing obligations under the Credit Agreement, the Guaranty Agreement and the
agreements related thereto) on any property or assets of the Company or any
Subsidiary with respect to (i) the terms or provisions of any Contract (other
than the credit facilities of the Company and Prize existing on the date of

<PAGE>

                                      -8-

this Agreement which are being repaid in connection with the Transactions),
except for any such conflict, breach, violation, default or event which would
not, individually or in the aggregate, have a Material Adverse Effect, (ii) the
certificate of incorporation or bylaws or similar organizational documents of
the Company or any of the Subsidiaries, or (iii) (assuming compliance with all
applicable state securities or "Blue Sky" laws and assuming the accuracy of the
representations and warranties of the Initial Purchasers in Section 8 hereof)
any statute, judgment, decree, order, rule or regulation of any court or
governmental agency or body applicable to the Company, the Subsidiaries or any
of their respective properties or assets, except for any such conflict, breach
or violation which would not, individually or in the aggregate, have a Material
Adverse Effect.

          (m) Each of the Indenture, the Notes, the Exchange Notes, the
Guarantees, the Registration Rights Agreement and the Credit Agreement conforms
in all material respects to the description thereof in the Final Memorandum.

          (n) The consolidated financial statements of the Company and the
related notes thereto included in the Final Memorandum present fairly in all
material respects the financial position, results of operations and cash flows
of the Company at the dates and for the periods to which they relate and have
been prepared in accordance with generally accepted accounting principles
applied on a consistent basis, except as otherwise stated therein, and comply as
to form in all material respects with the applicable accounting requirements of
the Act and the rules and regulations thereunder. The summary and selected
financial and statistical data of the Company included in the Final Memorandum
present fairly in all material respects the information shown therein and have
been prepared and compiled on a basis consistent with the audited financial
statements included therein, except as otherwise stated therein, and comply as
to form in all material respects with the applicable accounting requirements of
the Act and the rules and regulations thereunder (except for the exclusion of
earnings per share data). Deloitte & Touche LLP is an independent public
accounting firm as required by the Act and the rules and regulations thereunder.

              To the knowledge of the Company, the consolidated financial
          statements of Prize and the related notes thereto included in the
          Final Memorandum present fairly in all material respects the financial
          position, results of operations, and cash flows of Prize at the dates
          and for the periods to which they relate and have been prepared in
          accordance with generally accepted accounting principles applied on a
          consistent basis, except as otherwise stated therein. To the knowledge
          of the Company, the summary and selected financial and statistical
          data of Prize included in the Final Memorandum present fairly in all
          material respects the information shown therein and have been prepared
          and compiled on a basis consistent with the audited financial
          statements included therein, except as otherwise stated therein, and
          comply as to form in all material respects with the applicable
          accounting requirements of the Act and the rules and regula-

<PAGE>

                                      -9-

     tions thereunder (except for the exclusion of earnings per share data).
     Ernst & Young LLP is an independent accounting firm as required by the Act
     and the rules and regulations thereunder.

          (o) (i) The pro forma financial statements (including the notes
thereto) and other pro forma financial information included in the Final
Memorandum (A) comply as to form in all material respects with the applicable
requirements of Regulation S-X promulgated under the Exchange Act (except for
the exclusion of earnings per share data), (B) have been prepared in accordance
with the Commission's rules and guidelines with respect to pro forma financial
statements and (C) have been properly computed on the bases described therein,
and (ii) the assumptions used in the preparation of the pro forma financial
statements and other pro forma financial information included in the Final
Memorandum are reasonable and the adjustments used therein are appropriate to
give effect to the transactions or circumstances referred to therein.

          (p) Except as described in the Final Memorandum, there is not pending
or, to the best knowledge of the Company, threatened any action, suit,
proceeding, inquiry or investigation to which the Company or any of the
Guarantors is a party, or to which any of their properties or assets are
subject, before or brought by any court, arbitrator or governmental agency or
body, which, if determined adversely to the Company or any such Guarantor, would
have a Material Adverse Effect, or which seeks to restrain, enjoin, prevent the
consummation of or otherwise challenge the issuance or sale of the Securities to
be sold hereunder or the consummation of the other transactions described in the
Final Memorandum.

          (q) Each of the Company and the Subsidiaries owns or possesses
adequate licenses or other rights to use all patents, trademarks, service marks,
trade names, copyrights and know-how necessary to conduct the businesses now or
proposed to be operated by it as described in the Final Memorandum, and neither
the Company nor any of the Subsidiaries has received any notice of infringement
of or conflict with (or knows of no such infringement of or conflict with)
asserted rights of others with respect to any patents, trademarks, service
marks, trade names, copyrights or know-how which, if such assertion of
infringement or conflict were sustained, would, individually or in the
aggregate, have a Material Adverse Effect.

          (r) Each of the Company and the Subsidiaries possesses all licenses,
permits, certificates, consents, orders, approvals and other authorizations
from, and has made or will have made all declarations and filings with, all
federal, state, local and other governmental authorities, all self-regulatory
organizations and all courts and other tribunals presently required or necessary
to own or lease, as the case may be, and to operate its properties and to carry
on its business as now or proposed to be conducted as set forth in the Final
Memorandum ("Permits"), except where the failure to obtain such Permits would
not, individually or in the aggregate, have a Material Adverse Effect; each of
the Company and the Subsidiaries has (r) fulfilled and performed all of its
obligations with respect to such Permits and no event has occurred

<PAGE>

                                      -10-

which allows, or after notice or lapse of time would allow, revocation or
termination thereof or results in any other material impairment of the rights of
the holder of any such Permit, except for the termination of drilling permits in
the ordinary course of business which would not have a Material Adverse Effect;
and neither the Company nor any Subsidiary has received any notice of any
proceeding relating to revocation or modification of any such Permit, except as
described in the Final Memorandum and except where such revocation or
modification would not, individually or in the aggregate, have a Material
Adverse Effect.

          (s) Since the date of the most recent audited financial statements
appearing in the Final Memorandum, except as described therein there has been no
material adverse change, and no fact has become known to the Company which could
reasonably be expected to result in a material adverse change, on the
management, business, condition (financial or otherwise) or results of
operations of the Company and its Subsidiaries taken as a whole, whether or not
arising from transactions in the ordinary course of business, or any loss of, or
damage to, properties (whether or not insured) which could reasonably be
expected to affect materially and adversely the management, business, condition
(financial or otherwise) or results of operations of the Company and its
Subsidiaries taken as a whole. Since the date of the latest balance sheet
presented in the Final Memorandum, except as expressly disclosed in the Final
Memorandum and except as set forth on Schedule VI hereto, neither the Company
nor any of its Subsidiaries has (i) incurred or undertaken any liabilities or
obligations, direct or contingent, that are material to the Company and its
Subsidiaries taken as a whole, (ii) entered into any material transaction not in
the ordinary course of business and consistent with past practice or (iii)
declared or paid any dividend or made any distribution on any shares of its
capital stock or redeemed, purchased or otherwise acquired or agreed to redeem,
purchase or otherwise acquire any shares of its capital stock (other than any
dividends or distributions to the Company and as set forth on Schedule VI
hereto).

          (t) Each of the Company and Subsidiaries has filed all necessary
federal, state and foreign income and franchise tax returns, except where the
failure to so file such returns would not, individually or in the aggregate,
have a Material Adverse Effect, and has paid all taxes shown as due thereon; and
other than tax deficiencies which the Company or any of the Subsidiaries is
contesting in good faith and for which the Company or such Subsidiary has
provided adequate reserves, there is no tax deficiency that has been asserted
against the Company or any Subsidiary that would have, individually or in the
aggregate, a Material Adverse Effect.

          (u) The statistical and market-related data included in the Final
Memorandum are based on or derived from sources which the Company believes to be
reliable and accurate.

          (v) Neither Company nor any of the Subsidiaries nor any agent acting
on their behalf has taken or will take any action that might cause this
Agreement or the sale of the Securities to violate Regulation T, U or X of the
Board of Governors of the Federal Reserve System, in each case as in effect, or
as the same may hereafter be in effect, on the Closing Date.

<PAGE>

                                      -11-

          (w) Each of the Company and the Subsidiaries has good title to all
personal property described in the Final Memorandum as being owned by it, good
and defensible title to all real property described in the Final Memorandum as
being owned by it and good and defensible title to a leasehold estate in the
real and personal property described in the Final Memorandum as being leased by
it, in each case, as of the Closing Date, free and clear of all liens, charges,
encumbrances or restrictions, except for liens securing obligations under the
Credit Agreement or the Guaranty Agreement, liens securing obligations relating
to the Master Lease Agreement between General Electric Capital Corporation and
Magnum Hunter Production, Inc., liens on assets of Redhead Energy, Inc. securing
indebtedness of Redhead Energy, Inc. and except as described in the Final
Memorandum or to the extent the failure to have such title or the existence of
such liens, charges, encumbrances or restrictions would not, individually or in
the aggregate, have a Material Adverse Effect. All leases, contracts and
agreements to which the Company or any Subsidiary is a party or by which the
Company or such Subsidiary is bound are valid and enforceable against the
Company or such Subsidiary, to the knowledge of the Company are valid and
enforceable against the other party or parties thereto and are in full force and
effect with only such exceptions as would not, individually or in the aggregate,
have a Material Adverse Effect.

          (x) There are no legal or governmental proceedings involving or
affecting the Company, any of the Subsidiaries or any of their respective
properties or assets which would be required to be described in a prospectus
pursuant to the Act that are not described in the Final Memorandum, nor are
there any material contracts or other documents which would be required to be
described in a prospectus pursuant to the Act that are not described in the
Final Memorandum.

          (y) Except as would not, individually or in the aggregate, have a
Material Adverse Effect, (A) each of the Company and the Subsidiaries is in
compliance with and not subject to liability under applicable Environmental Laws
(as defined below), (B) each of the Company and the Subsidiaries has made all
filings and provided all notices required under any applicable Environmental
Law, and has and is in compliance with all Permits required under any applicable
Environmental Laws and each of them is in full force and effect, (C) there is no
civil, criminal or administrative action, suit, demand, claim, hearing, notice
of violation, investigation, proceeding, notice or demand letter or request for
information pending or, to the knowledge of the Company, threatened against the
Company or any Subsidiary under any Environmental Law, (D) no lien, charge,
encumbrance or restriction has been recorded under any Environmental Law with
respect to any assets, facility or property owned, operated, leased or
controlled by the Company or any Subsidiary, (E) neither the Company nor any
Subsidiary has received notice that it has been identified as a potentially
responsible party under the Compre(y) hensive Environmental Response,
Compensation and Liability Act of 1980, as amended ("CERCLA"), or any comparable
state law and (F) no property or facility of the Company or any Subsidiary is
(i) listed or proposed for listing on the National Priorities List under

<PAGE>

                                      -12-

CERCLA or (ii) listed in the Comprehensive Environmental Response, Compensation,
Liability Information System List promulgated pursuant to CERCLA, or on any
comparable list maintained by any state or local governmental authority.

          For purposes of this Agreement, "Environmental Laws" means the common
     law and all applicable federal, state and local laws or regulations, codes,
     orders, decrees, judgments or injunctions issued, promulgated, approved or
     entered thereunder, relating to pollution or protection of public or
     employee health and safety or the environment, including, without
     limitation, laws relating to (i) emissions, discharges, releases or
     threatened releases of hazardous materials, into the environment
     (including, without limitation, ambient air, surface water, groundwater,
     land surface or subsurface strata), (ii) the manufacture, processing,
     distribution, use, generation, treatment, storage, disposal, transport or
     handling of hazardous materials, and (iii) underground and aboveground
     storage tanks, and related piping, and emissions, discharges, releases or
     threatened releases therefrom.

          (z)  There is no strike, labor dispute, slowdown or work stoppage with
the employees of the Company or the Subsidiaries that is pending or, to the
knowledge of the Company, threatened.

          (aa) Each of the Company and the Subsidiaries carries insurance in
such amounts and covering such risks as is adequate for the conduct of its
business and the value of its properties.

          (bb) Neither the Company nor any Subsidiary has any liability for any
prohibited transaction within the meaning of (S)406 of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), or funding deficiency within
the meaning of (S)302 of ERISA or any complete or partial withdrawal liability
under (S)4201 of ERISA with respect to any pension, profit sharing or other plan
which is subject to ERISA to which the Company or any Subsidiary makes or ever
has made a contribution and in which any employee of the Company or any
Subsidiary is or has ever been a participant. With respect to such plans, each
of the Company and the Subsidiaries is in compliance in all material respects
with all applicable provisions of ERISA.

          (cc) Each of the Company and the Subsidiaries (i) makes and keeps
accurate books and records and (ii) maintains internal accounting controls which
provide reasonable assurance that (A) transactions are executed in accordance
with management's authorization, (B) transactions are recorded as necessary to
permit preparation of its financial statements and to maintain accountability
for its assets, (C) access to its assets is permitted only in accordance (cc)
with management's authorization and (D) the reported accountability for its
assets is compared with existing assets at reasonable intervals.

<PAGE>

                                      -13-

          (dd) Neither the Company nor any Subsidiary will be an "investment
company" or "promoter" or "principal underwriter" for an "investment company,"
as such terms are defined in the Investment Company Act of 1940, as amended, and
the rules and regulations thereunder.

          (ee) As of the date hereof, (a) the only material assets of Hunter
Butcher International Limited Liability Company, Canvasback Energy, Inc. and
Redhead Energy, Inc. are set forth on Schedule VIII hereto and (b) the total
consolidated assets owned by Inseco Corporation, SPL Gas Marketing Inc., Midland
Hunter Petroleum Limited Liability Company and Pintail Oil & Gas, Inc. do not
exceed 2% of the total consolidated assets of the Company.

          (ff) Except as set forth on Schedule VII hereto, no holder of
securities of the Company (other than the Registrable Notes (as defined in the
Registration Rights Agreement)) will be entitled to have such securities
registered under the registration statements required to be filed by the Company
pursuant to the Registration Rights Agreement.

          (gg) Immediately after the consummation of the transactions
contemplated by this Agreement, the fair value and present fair saleable value
of the assets of the Company and the Subsidiaries, on a consolidated basis, will
exceed the sum of their consolidated stated liabilities and identified
contingent liabilities; neither the Company nor any of the Subsidiaries is, or
will be after giving effect to the execution, delivery and performance of this
Agreement and the consummation of the transactions contemplated hereby, (a) left
with unreasonably small capital with which to carry on its business as it is
proposed to be conducted, (b) unable to pay its debts (contingent or otherwise)
as they mature or (c) otherwise insolvent.

          (hh) Neither the Company nor any of the Subsidiaries nor any of their
respective Affiliates (as defined in Rule 501(b) of Regulation D under the Act)
has directly, or through any agent, (i) sold, offered for sale, solicited offers
to buy or otherwise negotiated in respect of any "security" (as defined in the
Act) that is or could be integrated with the sale of the Securities in a manner
that would require the registration under the Act of the Securities or (ii)
engaged in any form of general solicitation or general advertising (as those
terms are used in Regulation D under the Act) in connection with the offering of
the Securities or in any manner involving a public offering within the meaning
of Section 4(2) of the Act.

          (ii) Assuming the accuracy of the representations and warranties of
the Initial Purchasers in Section 8 hereof, it is not necessary in connection
with the offer, sale and delivery of the Securities to the Initial Purchasers in
the manner contemplated by this Agreement to register any of the Securities
under the Act or to qualify the Indenture under the TIA.

          (jj) No securities of the Company are of the same class (within the
meaning of Rule 144A under the Act) as the Securities and listed on a national
securities exchange registered under Section 6 of the Exchange Act, or quoted in
a U.S. automated inter-dealer quotation system.

<PAGE>

                                      -14-

          (kk) Neither the Company nor any Subsidiary has taken, nor will take,
directly or indirectly, any action designed to, or that might be reasonably
expected to, cause or result in stabilization or manipulation of the price of
the Securities.

          (ll) Neither the Company nor the Subsidiaries, nor any of their
respective Affiliates (as defined in Rule 501(b) of Regulation D under the Act)
or any person acting on any of their behalf (other than the Initial Purchasers
as to which the Company and the Subsidiaries make no representation) has engaged
in any directed selling efforts (as that term is defined in Regulation S under
the Act ("Regulation S")) with respect to the Securities; the Company and its
respective Affiliates and any person acting on any of their behalf (other than
the Initial Purchasers as to which the Company and the Subsidiaries make no
representation) have complied with the offering restrictions requirement of
Regulation S.

          Any certificate signed by any officer of the Company or any Subsidiary
and delivered to any Initial Purchaser or to counsel for the Initial Purchasers
shall be deemed a joint and several representation and warranty by the Company
and each of the Subsidiaries to each Initial Purchaser as to the matters covered
thereby.

     3. Purchase, Sale and Delivery of the Securities. On the basis of the
     representations, warranties, agreements and covenants herein contained and
     subject to the terms and conditions herein set forth, the Company and the
     Guarantors agree to issue and sell to the Initial Purchasers, and each of
     the Initial Purchasers agrees, acting severally and not jointly, to
     purchase the Securities, in the respective principal amounts set forth
     opposite their names on Schedule I hereto, at 97.250% of their principal
     amount.

          One or more certificates in definitive form for the Securities that
the Initial Purchasers have agreed to purchase hereunder, and in such
denomination or denominations and registered in such name or names as the
Initial Purchasers request upon notice to the Company at least 48 hours prior to
the Closing Date, shall be delivered by or on behalf of the Company to the
Initial Purchasers, against payment by or on behalf of the Initial Purchasers of
the purchase price therefor by wire transfer of immediately available funds
payable to such account or account as the Company shall specify prior to the
Closing Date, or by such means as the parties hereto shall agree prior to the
Closing Date. Such delivery of and payment for the Securities shall be made at
the offices of Cahill Gordon & Reindel, 80 Pine Street, New York, New York, at
10:00 A.M., New York time, on March 15, 2002, or at such other place, time or
date as the Initial Purchasers and the Company may agree upon, such time and
date of delivery against payment being herein referred to as the "Closing Date."
The Company will make such certificate or certificates for the Securities
available for checking and packaging by the Initial Purchasers at the offices of
Deutsche Banc Alex. Brown Inc. in New York, New York or such other place as
Deutsche Banc Alex. Brown Inc. may designate, at least 24 hours prior to the
Closing Date.

<PAGE>

                                      -15-

     4. Offering by the Initial Purchasers. The Initial Purchasers propose to
     make an offering of the Securities at the price and upon the terms set
     forth in the Final Memorandum as soon as practicable after this Agreement
     is entered into and as in the sole judgment of the Initial Purchasers is
     advisable.

     5. Covenants of the Company. The Company and the Guarantors covenant and
     agree with each of the Initial Purchasers that:

          (a) The Company will not amend or supplement the Final Memorandum or
any amendment or supplement thereto of which the Initial Purchasers and counsel
to the Initial Purchasers shall not previously have been advised and furnished a
copy for a reasonable period of time prior to the proposed amendment or
supplement and as to which the Initial Purchasers shall not have given their
consent, which consent shall not be unreasonably withheld. The Company will
promptly, upon the reasonable request of the Initial Purchasers or counsel for
the Initial Purchasers, make any amendments or supplements to the Preliminary
Memorandum or the Final Memorandum that may be necessary or advisable in
connection with the resale of the Securities by the Initial Purchasers.

          (b) The Company and the Guarantors will cooperate with the Initial
Purchasers in arranging for the qualification of the Securities for offering and
sale under the securities or "Blue Sky" laws of such jurisdictions as the
Initial Purchasers may designate and will continue such qualification in effect
for as long as may be necessary to complete the resale of the Securities by the
Initial Purchasers; provided, however, that in connection therewith neither the
Company nor any Guarantor shall be required to qualify as a foreign corporation
or partnership or to execute a general consent to service of process in any
jurisdiction or subject itself to any tax in any such jurisdiction where it is
not then so subject.

          (c) If, at any time prior to the completion of the distribution by the
Initial Purchasers of the Notes or the Private Exchange Notes, any event occurs
or information becomes known as a result of which the Final Memorandum as then
amended or supplemented would include an untrue statement of a material fact, or
omit to state a material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading, or if for
any other reason it is necessary at any time to amend or supplement the Final
Memorandum in order to comply with applicable law, the Company will promptly
notify the Initial Purchasers thereof and will prepare, at the Company's
expense, an amendment or supplement to the Final Memorandum that corrects such
statement or omission or effects such compliance.

          (d) The Company will, without charge, provide to the Initial
Purchasers and to counsel for the Initial Purchasers as many copies of the
Preliminary Memorandum and the Final Memorandum or any amendment or supplement
thereto as the Initial Purchasers may reasonably request.

<PAGE>

                                      -16-

          (e) The Company will apply the net proceeds from the sale of the
Securities substantially as set forth under "Use of Proceeds" in the Final
Memorandum.

          (f) For so long as any Securities remain outstanding, the Company will
furnish to the Initial Purchasers copies of all reports and other communications
(financial or otherwise) furnished by the Company to the Trustee or the holders
of the Securities and, as soon as available, copies of any reports or financial
statements furnished to or filed by the Company with the Commission or any
national securities exchange on which any class of securities of the Company may
be listed.

          (g) Prior to the Closing Date, the Company will furnish to the Initial
Purchasers, as soon as they have been prepared by or are available to the
Company, a copy of any unaudited interim consolidated financial statements of
the Company for any period subsequent to the period covered by its most recent
financial statements appearing in the Final Memorandum.

          (h) None of the Company, the Guarantors nor any of their respective
Affiliates will sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any "security" (as defined in the Act) that could be
integrated with the sale of the Securities in a manner that would require the
registration under the Act of the Securities.

          (i) Neither the Company nor any Guarantor will, nor will the Company
permit any of the Subsidiaries to, engage in any form of general solicitation or
general advertising (as those terms are used in Regulation D under the Act) in
connection with the offering of the Securities or in any manner involving a
public offering within the meaning of Section 4(2) of the Act.

          (j) For so long as any of the Securities remain outstanding, the
Company will make available, upon request, to any holder of such Securities and
any prospective purchasers thereof the information specified in Rule 144A(d)(4)
under the Act, unless the Company is then subject to Section 13 or 15(d) of the
Exchange Act.

          (k) Each of the Company and the Guarantors will use its best efforts
to (i) permit the Securities to be designated PORTAL securities in accordance
with the rules and regulations adopted by the NASD relating to trading in the
Portal Market and (ii) permit the Securities to be eligible for clearance and
settlement through The Depository Trust Company.

<PAGE>

                                      -17-

     6. Expenses. The Company agrees to pay all costs and expenses incident to
     the performance of its obligations under this Agreement, whether or not the
     transactions contemplated herein are consummated or this Agreement is
     terminated pursuant to Section 11 or 12 hereof, including all costs and
     expenses incident to: (i) the printing, word processing or other production
     of documents with respect to such transactions, including any costs of
     printing the Preliminary Memorandum and the Final Memorandum and any
     amendments or supplements thereto, and any "Blue Sky" memoranda, (ii) all
     arrangements relating to the delivery to the Initial Purchasers of copies
     of the foregoing documents, (iii) the fees and disbursements of the
     counsel, the accountants and any other experts or advisors retained by the
     Company, (iv) the preparation (including printing), issuance and delivery
     to the Initial Purchasers of any certificates evidencing the Securities,
     (v) the qualification of the Securities under state securities and "Blue
     Sky" laws, including filing fees and reasonable fees and disbursements of
     counsel for the Initial Purchasers relating thereto, (vi) the expenses of
     the Company in connection with any meetings with prospective investors in
     the Securities, (vii) the fees and expenses of the Trustee, including fees
     and expenses of its counsel, and (viii) all expenses and listing fees
     incurred in connection with the application for quotation of the Securities
     on the Portal Market and (ix) any fees charged by investment rating
     agencies for the rating of the Securities. If the issuance and sale of the
     Securities provided for herein is not consummated because any condition to
     the obligations of the Initial Purchasers set forth in Section 7 hereof is
     not satisfied, because this Agreement is terminated pursuant to Section 12
     hereof or because of any failure, refusal or inability on the part of the
     Company to perform all obligations and satisfy all conditions on its part
     to be performed or satisfied hereunder (other than solely by reason of a
     default by the Initial Purchasers of their obligations hereunder after all
     conditions hereunder have been satisfied in accordance herewith), the
     Company will promptly reimburse the Initial Purchasers upon demand for all
     out-of-pocket expenses (including fees, disbursements and charges of Cahill
     Gordon & Reindel, counsel for the Initial Purchasers) that shall have been
     incurred by the Initial Purchasers in connection with the proposed purchase
     and sale of the Securities.

     7. Conditions of the Initial Purchasers' Obligations. The obligation of the
     Initial Purchasers to purchase and pay for the Securities shall, in their
     sole discretion, be subject to the satisfaction or waiver of the following
     conditions on or prior to the Closing Date:

          (a) On the Closing Date, the Initial Purchasers shall have received
the opinion, dated as of the Closing Date and addressed to the Initial
Purchasers, of Thompson & Knight LLP, counsel for the Company, in form and
substance satisfactory to counsel for the Initial Purchasers, to the effect
that:

<PAGE>

                                      -18-

                  (1) Each of the Guarantors is duly incorporated, validly
         existing and in good standing under the laws of its jurisdiction of
         incorporation and has all requisite corporate or partnership power and
         authority to own, lease and operate its properties and to conduct its
         business as described in the Final Memorandum. Each of the Company and
         the Guarantors is duly qualified as a foreign corporation or limited
         partnership and in good standing in each jurisdiction where the
         ownership or leasing of its properties or the conduct of its business
         requires such qualification, except where the failure to be so
         qualified would not, individually or in the aggregate, have a Material
         Adverse Effect.

                  (2) Giving effect to the Transactions, the Company has the
         authorized capitalization, the issued and outstanding preferred stock
         and, to the knowledge of such counsel, the issued and outstanding
         common stock, in each case as set forth on a schedule attached to such
         opinion. All of the outstanding shares of capital stock of the
         Guarantors are owned, directly or indirectly, by the Company, free and
         clear of all perfected security interests and, to the knowledge of such
         counsel, free and clear of all other liens, encumbrances, equities and
         claims or restrictions on transferability (other than those imposed by
         the Act and the securities or "Blue Sky" laws of certain jurisdictions
         and other than the security interests granted to the agent for the
         benefit of the lenders under the Credit Agreement) or voting.

                  (3) To the knowledge of such counsel, (A) except as set forth
         on Schedule V hereto, no options, warrants or other rights to purchase
         from the Company or any Subsidiary shares of capital stock or ownership
         interests in the Company or any Subsidiary are outstanding, (B) except
         as set forth on Schedule V hereto, no agreements or other obligations
         of the Company or any Subsidiary to issue, or other rights to cause the
         Company or any Subsidiary to convert, any obligation into, or exchange
         any securities for, shares of capital stock or ownership interests in
         the Company or any Subsidiary are outstanding and, (C) except as set
         forth on Schedule VII hereto, no holder of securities of the Company or
         any Subsidiary (other than the Registrable Notes) is entitled to have
         such securities registered under a registration statement filed by the
         Company pursuant to the Registration Rights Agreement.

                  (4) Each of the Guarantors has all requisite corporate or
         partnership power and authority to execute, deliver and perform its
         obligations under the Indenture and the Guarantees; the Indenture is in
         sufficient form for qualification under the TIA; the Indenture has been
         duly and validly authorized, executed and delivered by each of the
         Company and the Guarantors, and (assuming the due authorization,
         execution and delivery thereof by the Trustee) constitutes the valid
         and legally binding agreement of the Company and each of the
         Guarantors, enforceable against each of them in accordance with its
         terms, except that the enforcement thereof may be subject to (i)
         bankruptcy, insolvency, reorganization, fraudulent conveyance,
         moratorium or other similar laws now

<PAGE>

                                      -19-

         or hereafter in effect relating to creditors' rights generally and (ii)
         general principles of equity and the discretion of the court before
         which any proceeding therefor may be brought (regardless of whether
         such enforcement is considered in a proceeding in equity or at law).

                  (5) The Notes are in the form contemplated by the Indenture.
         The Notes have each been duly and validly authorized, executed and
         delivered by the Company and, when paid for by the Initial Purchasers
         in accordance with the terms of this Agreement (assuming the due
         authorization, execution and delivery of the Indenture by the Trustee
         and due authentication and delivery of the Notes by the Trustee in
         accordance with the Indenture), will constitute the valid and legally
         binding obligations of the Company, entitled to the benefits of the
         Indenture, and enforceable against the Company in accordance with their
         terms, except that the enforcement thereof may be subject to (i)
         bankruptcy, insolvency, reorganization, fraudulent conveyance,
         moratorium or other similar laws now or hereafter in effect relating to
         creditors' rights generally and (ii) general principles of equity and
         the discretion of the court before which any proceeding therefor may be
         brought (regardless of whether such enforcement is considered in a
         proceeding in equity or at law).

                  (6) The Guarantees are in the form contemplated by the
         Indenture. The Guarantees have been duly and validly authorized,
         executed and delivered by each Guarantor and (assuming the due
         authorization, execution and delivery of the Indenture by the Trustee)
         constitute the valid and legally binding obligations of each Guarantor,
         entitled to the benefits of the Indenture, enforceable against each of
         them in accordance with their terms, except that the enforcement
         thereof may be subject to (i) bankruptcy, insolvency, reorganization,
         fraudulent conveyance, moratorium or other similar laws now or
         hereafter in effect relating to creditors' rights generally and (ii)
         general principles of equity and the discretion of the court before
         which any proceeding therefor may be brought (regardless of whether
         such enforcement is considered in a proceeding in equity or at law).

                  (7) The Exchange Notes and the Private Exchange Notes and the
         guarantees to be endorsed on them have been duly and validly authorized
         by the Company and each of the Guarantors, as the case may be, and when
         the Exchange Notes and the Private Exchange Notes have been duly
         executed and delivered by the Company and the related guarantees have
         been duly executed and delivered by the Guarantors, each in accordance
         with the terms of the Registration Rights Agreement and the Indenture
         (assuming the due authorization, execution and delivery of the
         Indenture by the Trustee and due authentication and delivery of the
         Exchange Notes and the Private Exchange Notes by the Trustee in
         accordance with the Indenture), will constitute the valid and legally
         binding obligations of the Company and the Guarantors, respectively,
         entitled to

<PAGE>

                                      -20-

         the benefits of the Indenture, and enforceable against the Company and
         the Guarantors, respectively, in accordance with their terms, except
         that the enforcement thereof may be subject to (i) bankruptcy,
         insolvency, reorganization, fraudulent conveyance, moratorium or other
         similar laws now or hereafter in effect relating to creditors' rights
         generally and (ii) general principles of equity and the discretion of
         the court before which any proceeding therefor may be brought
         (regardless of whether such enforcement is considered in a proceeding
         in equity or at law).

                  (8) Each of the Guarantors has all requisite corporate or
         partnership power and authority to execute, deliver and perform its
         obligations under the Registration Rights Agreement; the Registration
         Rights Agreement has been duly and validly authorized, executed and
         delivered by the Company and the Guarantors, and (assuming due
         authorization, execution and delivery thereof by the Initial
         Purchasers) constitutes the valid and legally binding agreement of the
         Company and the Guarantors enforceable against each of them in
         accordance with its terms, except that (A) the enforcement thereof may
         be subject to (i) bankruptcy, insolvency, reorganization, fraudulent
         conveyance, moratorium or other similar laws now or hereafter in effect
         relating to creditors' rights generally and (ii) general principles of
         equity and the discretion of the court before which any proceeding
         therefor may be brought (regardless of whether such enforcement is
         considered in a proceeding in equity or at law) and (B) any rights to
         indemnity or contribution thereunder may be limited by federal and
         state securities laws and public policy considerations.

                  (9) Each of the Guarantors has all requisite corporate or
         partnership power and authority to execute, deliver and perform its
         obligations under this Agreement and to consummate the transactions
         contemplated hereby; this Agreement and the consummation by the Company
         and the Guarantors of the transactions contemplated hereby have been
         duly and validly authorized by the Company and the Guarantors. This
         Agreement has been duly executed and delivered by each of the Company
         and the Guarantors.

                  (10) Each of the Guarantors has all requisite corporate or
         partnership power and authority to execute, deliver and perform its
         obligations under the Guaranty Agreement; the Credit Agreement and the
         Guaranty Agreement have been duly and validly authorized, executed and
         delivered by the Company and the Guarantors, to the extent a party
         thereto, and (assuming due authorization, execution and delivery
         thereof by the other parties thereto) constitute the valid and legally
         binding agreements of the Company and the Guarantors, to the extent a
         party thereto, enforceable against each of them in accordance with
         their terms, except that the enforcement thereof may be subject to (i)
         bankruptcy, insolvency, reorganization, fraudulent conveyance,
         moratorium or other similar laws now or hereafter in effect relating to
         creditors' rights generally

<PAGE>

                                      -21-

         and (ii) general principles of equity and the discretion of the court
         before which any proceeding therefor may be brought (regardless of
         whether such enforcement is considered in a proceeding in equity or at
         law).

                  (11) The Indenture, the Notes, the Exchange Notes, the
         Guarantees, the Registration Rights Agreement and the Credit Agreement
         conform as to legal matters in all material respects to the
         descriptions thereof contained in the Final Memorandum.

                  (12) To the knowledge of such counsel, no legal or
         governmental proceedings are pending or threatened to which the Company
         or any Subsidiary is a party or to which the property or assets of the
         Company or any Subsidiary is subject which would be required under the
         Act to be described in a registration statement or in a prospectus and
         are not described in the Final Memorandum, or which seek to restrain,
         enjoin, prevent the consummation of or otherwise challenge the issuance
         or sale of the Notes to be sold hereunder or the consummation of the
         other transactions described in the Final Memorandum.

                  (13) The statements in the Final Memorandum under the headings
         "Summary of the Prize Merger Agreement" and "Material United States
         Federal Tax Consequences," insofar as they are descriptions of
         contracts, agreements or other legal documents, or refer to statements
         of law or legal conclusions, are accurate and present fairly the
         information described therein.

                  (14) Neither the Company nor any Subsidiary is, to the
         knowledge of such counsel, (i) in violation of its certificate of
         incorporation or bylaws or similar organizational documents, or (ii) in
         breach or violation of any statute, judgment, decree, order, rule or
         regulation applicable to it or any of its properties or assets, except
         for any such breach or violation which would not, individually or in
         the aggregate, have a Material Adverse Effect (it being understood that
         such counsel need express no opinion with respect to the regulations of
         the Railroad Commission of the State of Texas).

                  (15) The execution, delivery and performance of the
         Transaction Documents and the consummation of the Transactions
         (including, without limitation, the issuance and sale of the Notes to
         the Initial Purchasers) will not conflict with or constitute or result
         in a breach or a default under (or an event which with notice or
         passage of time or both would constitute a default under) or violation
         of or cause an acceleration of any obligation under, or result in the
         imposition or creation of (or the obligation to create or impose) a
         lien on any property or assets of the Company or any Subsidiary with
         respect to (i) the terms or provisions of any contract pursuant to
         which the Company or a Subsidiary has incurred indebtedness, any
         contract described in the Final Memorandum or any contract filed as an
         exhibit to the Incorporated Documents (such contracts, the "Material
         Contracts"), except for any such conflict, breach, violation, default
         or event

<PAGE>

                                      -22-

         which would not, individually or in the aggregate, have a Material
         Adverse Effect, (ii) the articles of incorporation or bylaws or similar
         organizational documents of the Company or any Subsidiary, or (iii)
         (assuming compliance with all applicable state securities or "Blue Sky"
         laws and assuming the accuracy of the representations and warranties of
         the Initial Purchasers in Section 8 hereof) any statute, judgment,
         decree, order, rule or regulation known to such counsel to be
         applicable to the Company or any Subsidiary and to transactions of the
         type contemplated by the Final Memorandum, except for any such
         conflict, breach or violation which would not, individually or in the
         aggregate, have a Material Adverse Effect.

                  (16) To the knowledge of such counsel, no consent, approval,
         authorization or order of any governmental authority is required for
         the issuance and sale by the Company of the Notes to the Initial
         Purchasers or the other transactions contemplated in this Agreement,
         except such as may be required under state securities and Blue Sky
         laws, as to which such counsel need express no opinion, and those which
         have previously been obtained.

                  (17) To the knowledge of such counsel, the Company and the
         Subsidiaries have obtained all Permits necessary to conduct the
         businesses now or proposed to be conducted by them as described in the
         Final Memorandum, the lack of which would, individually or in the
         aggregate, have a Material Adverse Effect; each of the Company and the
         Subsidiaries has fulfilled and performed all of its obligations with
         respect to such Permits and no event has occurred which allows, or
         after notice or lapse of time would allow, revocation or termination
         thereof or results in any other material impairment of the rights of
         the holder of any such Permit, except for any such revocation or
         termination which would not have a Material Adverse Effect.

                  (18) None of the Company or the Subsidiaries is, or
         immediately after the sale of the Notes to be sold hereunder and the
         application of the proceeds from such sale (as described in the Final
         Memorandum under the caption "Use of Proceeds") will be, an "investment
         company" as such term is defined in the Investment Company Act of 1940,
         as amended.

                  (19) No registration under the Act of the Notes is required in
         connection with the sale of the Notes to the Initial Purchasers as
         contemplated by this Agreement and the Final Memorandum or in
         connection with the initial resale of the Notes by the Initial
         Purchasers in accordance with Section 8 of this Agreement, and prior to
         the commencement of the Exchange Offer (as defined in the Registration
         Rights Agreement) or the effectiveness of the Shelf Registration
         Statement (as defined in the Registration Rights Agreement), the
         Indenture is not required to be qualified under the TIA, in each case
         assuming (i) (A) that the purchasers who buy such Notes in the initial
         resale thereof are qualified institutional buyers as defined in Rule
         144A promulgated un-

<PAGE>

                                      -23-

         der the Act ("QIBs") or (B) that the offer or sale of the Notes is made
         in an offshore transaction as defined in Regulation S, (ii) the
         accuracy of the Initial Purchasers' representations in Section 8 and
         those of the Company contained in this Agreement regarding the absence
         of a general solicitation in connection with the sale of such Notes to
         the Initial Purchasers and the initial resale thereof and (iii) the due
         performance by the Initial Purchasers of the agreements set forth in
         Section 8 hereof.

                  (20) Neither the consummation of the transactions contemplated
         by this Agreement nor the sale, issuance, execution or delivery of the
         Notes will violate Regulation T, U or X of the Board of Governors of
         the Federal Reserve System.

                  (21) Based upon Section 35.51 of the Uniform Commercial Code
         of Texas, in a properly presented action or proceeding arising out of
         or relating to the Note Documents in any court in the State of Texas or
         in any federal court sitting in the State of Texas, such court would
         give effect to the choice of substantive law of the State of New York
         to govern such documents.

                  At the time the foregoing opinion is delivered, such counsel
         shall additionally state that it has participated in conferences with
         officers and other representatives of the Company, representatives of
         the independent public accountants for the Company, representatives of
         the Initial Purchasers and counsel for the Initial Purchasers, at which
         conferences the contents of the Final Memorandum and related matters
         were discussed, and, although it has not independently verified and is
         not passing upon and assumes no responsibility for the accuracy,
         completeness or fairness of the statements contained in the Final
         Memorandum (except to the extent specified in subsections 7(a)(xi) and
         7(a)(xiii)), no facts have come to its attention which lead it to
         believe that the Final Memorandum, on the date thereof or at the
         Closing Date, contained an untrue statement of a material fact or
         omitted to state a material fact required to be stated therein or
         necessary to make the statements contained therein, in the light of the
         circumstances under which they were made, not misleading (it being
         understood that such firm need express no opinion with respect to the
         financial statements and related notes thereto and the other financial,
         statistical, accounting, reserve and well data included in the Final
         Memorandum). The opinion of such counsel described in this Section
         shall be rendered to the Initial Purchasers at the request of the
         Company and shall so state therein.

                  References to the Final Memorandum in this subsection (a)
         shall include any amendment or supplement thereto prepared in
         accordance with the provisions of this Agreement at the Closing Date.

                  In rendering such opinion, such counsel may state that they
         express no opinion as to the laws of any jurisdiction other than the
         federal laws of the United States and the laws of the State of Texas.
         Such counsel may also state that, insofar as such opin-

<PAGE>

                                      -24-

     ion involves factual matters, such counsel have relied, to the extent they
     deem proper, upon certificates of officers of the Company and certificates
     of public officials; provided that such certificates have been provided to
     the Initial Purchasers.

          (b) On the Closing Date, the Initial Purchasers shall have received
the opinion, dated as of the Closing Date and addressed to the Initial
Purchasers, of Woodburn & Wedge, special Nevada counsel for the Company, in form
and substance satisfactory to counsel for the Initial Purchasers, to the effect
that:

          (1) The Company is duly incorporated, validly existing and in good
     standing under the laws of the State of Nevada and has all requisite
     corporate power and authority to own, lease and operate its properties and
     to conduct its business as described in the Final Memorandum.

          (2) None of the outstanding shares of capital stock of the Company has
     been issued in violation of any preemptive or similar rights.

          (3) The Company has all requisite corporate power and authority to
     execute, deliver and perform its obligations under the Indenture, the
     Notes, the Exchange Notes and the Private Exchange Notes; and the Indenture
     has been duly and validly authorized, executed and delivered by the
     Company.

          (4) The Company has all requisite corporate power and authority to
     execute, deliver and perform its obligations under the Registration Rights
     Agreement; and the Registration Rights Agreement has been duly and validly
     authorized, executed and delivered by the Company.

          (5) The Company has all requisite corporate power and authority to
     execute, deliver and perform its obligations under this Agreement and to
     consummate the transactions contemplated hereby; and this Agreement has
     been duly and validly authorized, executed and delivered by the Company.

          (6) The Company has all requisite corporate power and authority to
     execute, deliver and perform its obligations under the Credit Agreement;
     and the Credit Agreement has been duly and validly authorized, executed and
     delivered by the Company.

          (c) On the Closing Date, the Initial Purchasers shall have received
the opinion, dated as of the Closing Date and addressed to the Initial
Purchasers, of Morgan Johnston, General Counsel of the Company, in form and
substance satisfactory to counsel for the Initial Purchasers, to the effect
that:

<PAGE>

                                      -25-

          (1) No legal or governmental proceedings are pending or, to the
     knowledge of such counsel, threatened to which the Company or any
     Subsidiary is a party or to which the property or assets of the Company or
     any Subsidiary is subject which would be required under the Act to be
     described in a registration statement or in a prospectus and are not
     described in the Final Memorandum, or which seek to restrain, enjoin,
     prevent the consummation of or otherwise challenge the issuance or sale of
     the Notes to be sold hereunder or the consummation of the other
     transactions described in the Final Memorandum.

          (2) To the knowledge of such counsel, no Contract to which the Company
     or any Subsidiary is a party would be required under the Act to be
     described in a registration statement or prospectus that is not described
     in the Final Memorandum.

          (3) Neither the Company nor any Subsidiary is (i) in violation of its
     certificate of incorporation or bylaws or similar organizational documents,
     (ii) to the knowledge of such counsel, in breach or violation of any
     statute, judgment, decree, order, rule or regulation applicable to it or
     any of its properties or assets, except for any such breach or violation
     which would not, individually or in the aggregate, have a Material Adverse
     Effect, or (iii) to the knowledge of such counsel, in breach or default
     under (nor has any event occurred which, with notice or passage of time or
     both, would constitute a default under) or in violation of any of the terms
     or provisions of any Contract, except for any such breach, default,
     violation or event which would not, individually or in the aggregate, have
     a Material Adverse Effect.

          (4) The execution, delivery and performance of the Transaction
     Documents and the consummation of the Transactions (including, without
     limitation, the issuance and sale of the Notes to the Initial Purchasers)
     will not conflict with or constitute or result in a breach or a default
     under (or an event which with notice or passage of time or both would
     constitute a default under) or violation of or cause an acceleration of any
     obligation under, or result in the imposition or creation of (or the
     obligation to create or impose) a lien on any property or assets of the
     Company or any Subsidiary with respect to (i) the terms or provisions of
     any Contract, except for any such conflict, breach, violation, default or
     event which would not, individually or in the aggregate, have a Material
     Adverse Effect, (ii) the certificate of incorporation or bylaws or similar
     organizational documents of the Company or any Subsidiary, or (iii)
     (assuming compliance with all applicable state securities or "Blue Sky"
     laws and assuming the accuracy of the representations and warranties of the
     Initial Purchasers in Section 8 hereof) any statute, judgment, decree,
     order, rule or regulation known to such counsel to be applicable to the
     Company or any Subsidiary and to transactions of the type contemplated by
     the Final Memorandum, except for any such conflict, breach or violation
     which would not, individually or in the aggregate, have a Material Adverse
     Effect.

<PAGE>

                                      -26-

          (5) To the knowledge of such counsel, no consent, approval,
     authorization or order of any governmental authority is required for the
     issuance and sale by the Company of the Notes to the Initial Purchasers or
     the other transactions contemplated in this Agreement, except such as may
     be required under Blue Sky laws, as to which such counsel need express no
     opinion, and those which have previously been obtained.

          (6) To the knowledge of such counsel, the Company and the Subsidiaries
     have obtained all Permits necessary to conduct the businesses now or
     proposed to be conducted by them as described in the Final Memorandum, the
     lack of which would, individually or in the aggregate, have a Material
     Adverse Effect; each of the Company and the Subsidiaries has fulfilled and
     performed all of its obligations with respect to such Permits and no event
     has occurred which allows, or after notice or lapse of time would allow,
     revocation or termination thereof or results in any other material
     impairment of the rights of the holder of any such Permit, except for any
     such revocation or termination which would not have a Material Adverse
     Effect.

          At the time the foregoing opinion is delivered, such counsel shall
     additionally state that he has participated in conferences with officers
     and other representatives of the Company, representatives of the
     independent public accountants for the Company, representatives of the
     Initial Purchasers and counsel for the Initial Purchasers, at which
     conferences the contents of the Final Memorandum and related matters were
     discussed, and, although he has not independently verified and is not
     passing upon and assumes no responsibility for the accuracy, completeness
     or fairness of the statements contained in the Final Memorandum, no facts
     have come to his attention which lead him to believe that the Final
     Memorandum, on the date thereof or at the Closing Date, contained an untrue
     statement of a material fact or omitted to state a material fact required
     to be stated therein or necessary to make the statements contained therein,
     in the light of the circumstances under which they were made, not
     misleading (it being understood that such counsel need express no opinion
     with respect to the financial statements and related notes thereto and the
     other financial, statistical, accounting, reserve and well data included in
     the Final Memorandum). The opinion of such counsel described in this
     Section shall be rendered to the Initial Purchasers at the request of the
     Company and shall so state therein.

          References to the Final Memorandum in this subsection (c) shall
     include any amendment or supplement thereto prepared in accordance with the
     provisions of this Agreement at the Closing Date.

          In rendering such opinion, such counsel may state that he expresses no
     opinion as to the laws of any jurisdiction other than the federal laws of
     the United States and the laws of the State of Texas. Such counsel may also
     state that, insofar as such opinion involves factual matters, such counsel
     has relied, to the extent they deem proper,

<PAGE>

                                      -27-

     upon certificates of officers of the Company and certificates of public
     officials; provided that such certificates have been provided to the
     Initial Purchasers.

          (d) The Initial Purchasers shall have received an opinion, dated the
Closing Date, of Cahill Gordon & Reindel, counsel for the Initial Purchasers,
with respect to certain legal matters relating to this Agreement, and such other
related matters as the Initial Purchasers may reasonably require. In rendering
such opinion, Cahill Gordon & Reindel shall have received and may rely upon such
certificates and other documents and information as they may reasonably request
to pass upon such matters.

          (e) The Initial Purchasers shall have received from Deloitte & Touche
LLP, independent public accountants for the Company, and Ernst & Young LLP,
independent public accountants for Prize, comfort letters, dated the date hereof
and the Closing Date, in form and substance reasonably satisfactory to the
Initial Purchasers and counsel for the Initial Purchasers.

          (f) The Initial Purchasers shall have received letters, dated the
Closing Date and addressed to the Initial Purchasers, from DeGolyer and
MacNaughton, Ryder Scott Company, L.P. and Cawley, Gillespie & Associates, Inc.,
each independent petroleum engineers for the Company, and Netherland, Sewell &
Associates, Inc., independent petroleum engineers for Prize, in form and
substance reasonably satisfactory to the Initial Purchasers and counsel for the
Initial Purchasers.

          (g) The representations and warranties of the Company and the
Guarantors contained in this Agreement shall be true and correct in all material
respects on and as of the Closing Date as if made on and as of the Closing Date;
each of the Company and the Guarantors shall have performed all covenants and
agreements and satisfied all conditions on its part to be performed or satisfied
hereunder at or prior to the Closing Date; and, except as set forth in the Final
Memorandum (exclusive of any amendment or supplement thereto after the date
hereof) subsequent to the date of the most recent financial statements in such
Final Memorandum, there shall have been no event or development that,
individually or in the aggregate, has or would be reasonably likely to have a
Material Adverse Effect.

          (h) The issuance and sale of the Securities pursuant to this Agreement
shall not be enjoined (temporarily or permanently) and no restraining order or
other injunctive order shall have been issued or any action, suit or proceeding
shall have been commenced with respect to this Agreement before any court or
governmental authority.

          (i) The Initial Purchasers shall have received certificates, dated the
Closing Date, signed on behalf of the Company by its Chief Executive Officer and
Chief Financial Officer to the effect that:

<PAGE>

                                      -28-

          (1) The representations and warranties of the Company and the
     Guarantors in this Agreement are true and correct in all material respects
     as if made on and as of the Closing Date, and each of the Company and the
     Guarantors has performed in all material respects all covenants and
     agreements and satisfied all conditions on its part to be performed or
     satisfied hereunder at or prior to the Closing Date;

          (2) At the Closing Date, since the date hereof or since the date of
     the most recent financial statements in the Final Memorandum (exclusive of
     any amendment or supplement thereto after the date hereof), no event or
     development has occurred and no information has become known that,
     individually or in the aggregate, has or would be reasonably likely to have
     a Material Adverse Effect; and

          (3) The sale of the Securities hereunder has not been enjoined
     (temporarily or permanently).

          (j) On the Closing Date, the Initial Purchasers shall have received
the Registration Rights Agreement executed by the Company and the Guarantors and
such agreement shall be in full force and effect at all times from and after the
Closing Date.

          (k) On or before the Closing Date, the Credit Agreement and the
Guaranty Agreement shall have been executed and delivered by the Company and the
Guarantors (to the extent a party thereto), and the other parties thereto.

          (l) On or before the Closing Date, the Initial Purchasers and counsel
for the Initial Purchasers shall have received such further documents,
certificates and schedules or instruments relating to the business, corporate,
legal and financial affairs of the Company as they shall have heretofore
reasonably requested from the Company and the Guarantors.

          (m) The Merger shall have been consummated, or shall be consummated
simultaneously with the closing of the offering of the Notes, on the terms and
conditions set forth in the Merger Agreement in the form previously made
available to the Initial Purchasers. All conditions to the Company's obligation
to consummate the Merger set forth in the Merger Agreement shall have been
satisfied, unless waived with the prior written consent of the Initial
Purchasers. The Merger Agreement shall be in full force and effect, and (unless
consented to in writing by the Initial Purchasers) there shall have been no
material amendments, alterations, modifications or waivers of any provision
thereof since the date of this Agreement (that have not been consented to in
writing by the Initial Purchasers). A certificate of merger evidencing the
merger shall have been filed with the Secretary of State of Delaware.

          All such documents, opinions, certificates and schedules or
instruments delivered pursuant to this Agreement will comply with the provisions
hereof only if they are reasonably satisfactory in all material respects to the
Initial Purchasers and counsel for the Initial

<PAGE>

                                      -29-

Purchasers. The Company shall furnish to the Initial Purchasers such conformed
copies of such documents, opinions, certificates and schedules or instruments in
such quantities as the Initial Purchasers shall reasonably request.

     8. Offering of Securities; Restrictions on Transfer.

          (a) Each of the Initial Purchasers represents and warrants (as to
itself only) that it is a QIB. Each of the Initial Purchasers agrees with the
Company (as to itself only) that (i) it has not and will not solicit offers for,
or offer or sell, the Securities by any form of general solicitation or general
advertising (as those terms are used in Regulation D under the Act) or in any
manner involving a public offering within the meaning of Section 4(2) of the
Act; and (ii) it has and will solicit offers for the Securities only from, and
will offer the Securities only to (A) in the case of offers inside the United
States, persons whom the Initial Purchasers reasonably believe to be QIBs or, if
any such person is buying for one or more institutional accounts for which such
person is acting as fiduciary or agent, only when such person has represented to
the Initial Purchasers that each such account is a QIB, to whom notice has been
given that such sale or delivery is being made in reliance on Rule 144A, and, in
each case, in transactions under Rule 144A and (B) in the case of offers outside
the United States, to persons other than U.S. persons ("foreign purchasers,"
which term shall include dealers or other professional fiduciaries in the United
States acting on a discretionary basis for foreign beneficial owners (other than
an estate or trust)); provided, however, that in the case of this clause (B), in
purchasing such Securities such persons are deemed to have represented and
agreed as provided under the caption "Notice to Investors" contained in the
Final Memorandum.

          (b) Each of the Initial Purchasers represents and warrants (as to
itself only) with respect to offers and sales outside the United States that (i)
it has and will comply with all applicable laws and regulations in each
jurisdiction in which it acquires, offers, sells or delivers Securities or has
in its possession or distributes any Memorandum or any other material, in all
cases at its own expense; (ii) the Securities have not been and will not be
offered or sold within the United States or to, or for the account or benefit
of, U.S. persons except in accordance with Regulation S under the Act or
pursuant to an exemption from the registration requirements of the Act; and
(iii) it has offered the Securities and will offer and sell the Securities (A)
as part of its distribution at any time and (B) otherwise until 40 days after
the later of the commencement of the offering and the Closing Date, only in
accordance with Rule 903 of Regulation S. Accordingly, neither such Initial
Purchaser nor its affiliates, nor any persons acting on its behalf, have engaged
or will engage in any directed selling efforts with respect to the Securities,
and such Initial Purchaser, its affiliates and all per sons acting on its or
their behalf have complied and will comply with the offering restrictions
requirement of Regulation S.

<PAGE>

                                      -30-

          9. Indemnification and Contribution. (a) The Company and the
          Guarantors agree, jointly and severally, to indemnify and hold
          harmless the Initial Purchasers and the affiliates, directors,
          officers, agents, representatives and employees of the Initial
          Purchasers, and each other person, if any, who controls any Initial
          Purchaser within the meaning of Section 15 of the Act or Section 20 of
          the Exchange Act, against any losses, claims, damages or liabilities,
          joint or several, to which any Initial Purchaser or any such
          affiliate, director, officer, agent, representative, employee or
          controlling person may become subject under the Act, the Exchange Act
          or otherwise, insofar as any such losses, claims, damages or
          liabilities (or actions in respect thereof) arise out of or are based
          upon:

               (1) any untrue statement or alleged untrue statement of any
          material fact contained in (A) any Memorandum or any amendment or
          supplement thereto or (B) any application or other document, or any
          amendment or supplement thereto, executed by the Company or any
          Guarantor or based upon written information furnished by or on behalf
          of the Company or any Guarantor filed in any jurisdiction in order to
          qualify the Securities under the securities or "Blue Sky" laws thereof
          or filed with any securities association or securities exchange (each,
          an "Application"); or

               (2) the omission or alleged omission to state, in any Memorandum
          or any amendment or supplement thereto, or any Application, a material
          fact required to be stated therein or necessary to make the statements
          therein, in the light of the circumstances under which they were made,
          not misleading,

and will reimburse, as incurred, the Initial Purchasers and each such affiliate,
director, officer, agent, representative and employee and each such controlling
person for any legal or other expenses reasonably incurred by the Initial
Purchasers, such affiliate, director, officer, agent, representative or employee
or such controlling person in connection with investigating, defending against
or appearing as a third-party witness in connection with any such loss, claim,
damage, liability or action; provided, however, that the Company and the
Guarantors will not be liable (i) in any such case to the extent that any such
loss, claim, damage, or liability arises out of or is based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in
any Memorandum or any amendment or supplement thereto, or any Application, in
reliance upon and in conformity with written information furnished to the
Company by the Initial Purchasers specifically for use therein or (ii) with
respect to the Preliminary Memorandum, to the extent that any such loss, claim,
damage or liability arises solely from the fact that the Initial Purchasers sold
Securities to a person to whom there was not sent or given a copy of the Final
Memorandum (as amended or supplemented) at or prior to the written confirmation
of such sale if the Company shall have previously furnished copies
thereof to the Initial Purchasers in accordance with Section 5(d) hereof and the
Final Memorandum (as amended or supplemented) would have corrected any such
untrue statement or omission. The indemnity

<PAGE>

                                      -31-

agreement provided for in this Section 9 will be in addition to any liability
that the Company and the Guarantors may otherwise have to the indemnified
parties. The Company and the Guarantors shall not be liable under this paragraph
(a) for any settlement of any claim or action effected without their consent,
which consent shall not be unreasonably withheld or delayed.

     The Initial Purchasers shall not, without the prior written consent of the
Company and the Guarantors, effect any settlement or compromise of any pending
or threatened proceeding in respect of which the Company and the Guarantors are
or could have been a party, or indemnity could have been sought hereunder by the
Company and the Guarantors, unless such settlement (A) includes an unconditional
written release of the Company and the Guarantors, in form and substance
reasonably satisfactory to the Company and the Guarantors, from all liability on
claims that are the subject matter of such proceeding and (B) does not include
any statement as to an admission of fault, culpability or failure to act by or
on behalf of the Company or the Guarantors.

     (b) The Initial Purchasers agree, severally and not jointly, to indemnify
and hold harmless the Company and the Guarantors, their respective affiliates,
directors, officers, agents, representatives and employees and each other
person, if any, who controls the Company and the Guarantors within the meaning
of Section 15 of the Act or Section 20 of the Exchange Act against any losses,
claims, damages or liabilities to which the Company or any Guarantor or any such
affiliate, director, officer, agent, representative, employees or controlling
person may become subject under the Act, the Exchange Act or otherwise, insofar
as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon (i) any untrue statement or alleged untrue
statement of any material fact contained in any Memorandum or any amendments or
supplement thereto, or any Application or (ii) the omission or the alleged
omission to state therein a material fact required to be stated in any
Memorandum or any amendment or supplement thereto, or any Application, or
necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information concerning such Initial Purchaser furnished
to the Company by such Initial Purchaser specifically for use therein; and,
subject to the limitation set forth immediately preceding this clause, will
reimburse, as incurred, any legal or other expenses reasonably incurred by the
Company or any Guarantor or any such affiliate, director, officer, agent,
representative, employee or controlling person in connection with investigating
or defending against or appearing as a third party witness in connection with
any such loss, claim, damage, liability or action in respect thereof. This
indemnity agreement will be in addition to any liability that the Initial
Purchasers may otherwise have to the indemnified parties. The Initial Purchasers
shall not be liable under this Section 9 for any settlement of any claim or
action effected without their consent, which consent shall not be unreasonably
withheld or delayed.

<PAGE>

                                      -32-

          The Company and the Guarantors shall not, without the prior written
consent of the Initial Purchasers, effect any settlement or compromise of any
pending or threatened proceeding in respect of which any Initial Purchaser is or
could have been a party, or indemnity could have been sought hereunder by any
Initial Purchaser, unless such settlement (A) includes an unconditional written
release of the Initial Purchasers, in form and substance reasonably satisfactory
to the Initial Purchasers, from all liability on claims that are the subject
matter of such proceeding and (B) does not include any statement as to an
admission of fault, culpability or failure to act by or on behalf of any Initial
Purchaser.

          (c) Promptly after receipt by an indemnified party under this Section
9 of notice of the commencement of any action for which such indemnified party
is entitled to indemnification under this Section 9, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party
under this Section 9, notify the indemnifying party of the commencement thereof
in writing; but the omission to so notify the indemnifying party (i) will not
relieve it from any liability under paragraph (a) or (b) above unless and to the
extent such failure results in the forfeiture by the indemnifying party of
substantial rights and defenses and (ii) will not, in any event, relieve the
indemnifying party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraphs (a) and (b) above. In case any
such action is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein and, to the extent that it may wish, jointly
with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel reasonably satisfactory to such indemnified party;
provided, however, that if (i) the use of counsel chosen by the indemnifying
party to represent the indemnified party would present such counsel with a
conflict of interest, (ii) the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have been advised by counsel that there may be one or more legal defenses
available to it and/or other indemnified parties that are different from or
additional to those available to the indemnifying party, or (iii) the
indemnifying party shall not have employed counsel reasonably satisfactory to
the indemnified party to represent the indemnified party within a reasonable
time after receipt by the indemnifying party of notice of the institution of
such action, then, in each such case, the indemnifying party shall not have the
right to direct the defense of such action on behalf of such indemnified party
or parties and such indemnified party or parties shall have the right to select
separate counsel to defend such action on behalf of such indemnified party or
parties. After notice from the indemnifying party to such indemnified party of
its election so to assume the defense thereof and approval by such indemnified
party of counsel appointed to defend such action, the indemnifying party will
not be liable to such indemnified party under this Section 9 for any legal or
other expenses, other than reasonable costs of investigation, subsequently
incurred by such indemnified party in connection with the defense thereof,
unless (i) the indemnified party shall have employed separate counsel in
accordance with the proviso to the immediately preceding sentence (it being
understood, however, that in connection with such action the indemnifying party
shall not be liable

<PAGE>

                                      -33-

for the expenses of more than one separate counsel (in addition to local
counsel) in any one action or separate but substantially similar actions in the
same jurisdiction arising out of the same general allegations or circumstances,
designated by Deutsche Banc Alex. Brown Inc. in the case of paragraph (a) of
this Section 9 or the Company in the case of paragraph (b) of this Section 9,
representing the indemnified parties under such paragraph (a) or paragraph (b),
as the case may be, who are parties to such action or actions) or (ii) the
indemnifying party has authorized in writing the employment of counsel for the
indemnified party at the expense of the indemnifying party. After such notice
from the indemnifying party to such indemnified party, the indemnifying party
will not be liable for the costs and expenses of any settlement of such action
effected by such indemnified party without the prior written consent of the
indemnifying party (which consent shall not be unreasonably withheld), unless
such indemnified party waived in writing its rights under this Section 9, in
which case the indemnified party may effect such a settlement without such
consent.

          (d) In circumstances in which the indemnity agreement provided for in
the preceding paragraphs of this Section 9 is unavailable to, or insufficient to
hold harmless, an indemnified party in respect of any losses, claims, damages or
liabilities (or actions in respect thereof), each indemnifying party, in order
to provide for just and equitable contribution, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims,
damages or liabilities (or actions in respect thereof) in such proportion as is
appropriate to reflect (i) the relative benefits received by the indemnifying
party or parties on the one hand and the indemnified party on the other from the
offering of the Securities or (ii) if the allocation provided by the foregoing
clause (i) is not permitted by applicable law, not only such relative benefits
but also the relative fault of the indemnifying party or parties on the one hand
and the indemnified party on the other in connection with the statements or
omissions or alleged statements or omissions that resulted in such losses,
claims, damages or liabilities (or actions in respect thereof). The relative
benefits received by the Company and the Guarantors on the one hand and any
Initial Purchaser on the other shall be deemed to be in the same proportion as
the total proceeds from the offering (before deducting expenses) received by the
Company bear to the total discounts and commissions received by such Initial
Purchaser. The relative fault of the parties shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company and the Guarantors on the one
hand, or such Initial Purchaser on the other, the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission or alleged statement or omission, and any other equitable
considerations appropriate in the circumstances. The Company, the Guarantors and
the Initial Purchasers agree that it would not be just and equitable if the
amount of such contribution were determined by pro rata or per capita allocation
or by any other method of allocation that does not take into account the
equitable considerations referred to in the first sentence of this paragraph
(d). Notwithstanding any other provision of this paragraph (d), no Initial
Purchaser shall be obligated to make contributions hereunder that in the

<PAGE>

                                      -34-

aggregate exceed the total discounts, commissions and other compensation
received by such Initial Purchaser under this Agreement, less the aggregate
amount of any damages that such Initial Purchaser has otherwise been required to
pay by reason of the untrue or alleged untrue statements or the omissions or
alleged omissions to state a material fact, and no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of this paragraph (d), each affiliate, director,
officer, agent, representative and employee of an Initial Purchaser and each
person, if any, who controls an Initial Purchaser within the meaning of Section
15 of the Act or Section 20 of the Exchange Act shall have the same rights to
contribution as the Initial Purchasers, and each affiliate, director, officer,
agent, representative and employee of the Company and the Guarantors and each
person, if any, who controls the Company or an Guarantor within the meaning of
Section 15 of the Act or Section 20 of the Exchange Act, shall have the same
rights to contribution as the Company and the Guarantors.

<PAGE>

                                      -35-

          10. Survival Clause. The respective representations, warranties,
          agreements, covenants, indemnities and other statements of the
          Company, the Guarantors, their officers and the Initial Purchasers set
          forth in this Agreement or made by or on behalf of them, respectively,
          pursuant to this Agreement shall remain in full force and effect,
          regardless of (i) any investigation made by or on behalf of the
          Company, the Guarantors, any of their officers or directors, the
          Initial Purchasers or any controlling person referred to in Section 9
          hereof and (ii) delivery of and payment for the Securities. The
          respective agreements, covenants, indemnities and other statements set
          forth in Sections 6, 9 and 16 hereof shall remain in full force and
          effect, regardless of any termination or cancellation of this
          Agreement.

          11. Default by an Initial Purchaser. If any one or more Initial
          Purchasers shall fail to purchase and pay for any of the Securities
          agreed to be purchased by such Initial Purchaser hereunder and such
          failure to purchase shall constitute a default in the performance of
          its or their obligations under this Agreement, the remaining Initial
          Purchasers shall be obligated severally to take up and pay for (in the
          respective proportions which the amount of Securities set forth
          opposite their names in Schedule 1 hereto bears to the aggregate
          amount of Securities set forth opposite the names of all the remaining
          Initial Purchasers) the Securities which the defaulting Initial
          Purchaser or Initial Purchasers agreed but failed to purchase;
          provided, however, that in the event that the amount of Securities
          which the defaulting Initial Purchaser or Initial Purchasers agreed
          but failed to purchase shall exceed 10% of the total aggregate amount
          of Securities set forth in Schedule 1 hereto, the remaining Initial
          Purchasers shall have the right to purchase all, but shall not be
          under any obligation to purchase any, of the Securities, and if such
          nondefaulting Initial Purchasers do not purchase all the Securities,
          this Agreement will terminate without liability to any nondefaulting
          Initial Purchaser or the Company except as provided in Section 10
          hereof. In the event of a default by any Initial Purchaser as set
          forth in this Section 11, the Closing Date shall be postponed for such
          period, not exceeding five business days, as the nondefaulting Initial
          Purchasers shall determine in order that the required changes in the
          Final Memorandum or in any other documents or arrangements may be
          effected. Nothing contained in this Agreement shall relieve any
          defaulting Initial Purchaser of its liability, if any, to the Company
          or any nondefaulting Initial Purchaser for damages occasioned by its
          default hereunder.

          12. Termination. (a) This Agreement may be terminated in the sole
          discretion of the Initial Purchasers by notice to the Company given
          prior to the Closing Date in the event that the Company or any of the
          Guarantors shall have failed, refused or been unable to perform, in
          all material respects, all obligations and satisfy all conditions on
          its part to be performed or satisfied hereunder at or prior thereto
          or, if at or prior to the Closing Date:

<PAGE>

                                      -36-

          (1) either (i) the Company or any Guarantor shall have sustained any
     loss or interference with respect to its businesses or properties from
     fire, flood, hurricane, accident or other calamity, whether or not covered
     by insurance, or from any strike, labor dispute, slow down or work stoppage
     or any legal or governmental proceeding, which loss or interference, in the
     sole judgment of the Initial Purchasers, has had or has a Material Adverse
     Effect, or (ii) there shall have been, in the sole judgment of the Initial
     Purchasers, any event or development that, individually or in the
     aggregate, has or could be reasonably likely to have a Material Adverse
     Effect (including without limitation a change in control of the Company),
     except in each case as described in the Final Memorandum (exclusive of any
     amendment or supplement thereto;

          (2) trading in securities generally on the New York Stock Exchange,
     the American Stock Exchange or the Nasdaq National Market shall have been
     suspended or maximum or minimum prices shall have been established on any
     such exchange or market;

          (3) a banking moratorium shall have been declared by New York or
     United States authorities;

          (4) there shall have been (A) an outbreak or escalation of hostilities
     between the United States and any foreign power, or (B) an outbreak or
     escalation of any other insurrection or armed conflict involving the United
     States or any other national or international calamity or emergency or (C)
     any material change in the financial markets of the United States that, in
     the case of (A), (B) or (C) above and in the sole judgment of the Initial
     Purchasers, makes it impracticable or inadvisable to proceed with the
     offering or the delivery of the Securities as contemplated by the Final
     Memorandum; or

          (5) any securities of the Company shall have been downgraded or placed
     on any "watch list" for possible downgrading by any nationally recognized
     statistical rating organization.

          (b) Termination of this Agreement pursuant to Section 11 or this
Section 12 shall be without liability of any party to any other party except as
provided in Section 10 or 11 hereof.

<PAGE>

                                      -37-

          13. Information Supplied by the Initial Purchasers. The statements set
          forth in the last paragraph of the cover page and in the third
          sentence of the third paragraph and the third sentence of the fifth
          paragraph of the section entitled "Private Placement" constitute the
          only information furnished by the Initial Purchasers to the Company
          for the purposes of Sections 2(a) and 9 hereof.

          14. Notices. All communications hereunder shall be in writing and, if
          sent to the Initial Purchasers, shall be mailed or delivered or
          telecopied and confirmed in writing to Deutsche Banc Alex. Brown Inc.,
          31 West 52nd Street, New York, New York 10019, Attention: Corporate
          Finance Department, and if sent to the Company or the Guarantors,
          shall be mailed, delivered or telecopied and confirmed in writing to
          the Company at: 600 East Las Colinas Blvd., Suite 1100, Irving, Texas
          75039, Attention: Vice President and General Counsel. All such notices
          and communications shall be deemed to have been duly given: when
          delivered by hand, if personally delivered; five business days after
          being deposited in the mail, postage prepaid, if mailed; and one
          business day after being timely delivered to a next-day air courier.

          15. Successors. This Agreement shall inure to the benefit of and be
          binding upon the Initial Purchasers, the Company, the Guarantors and
          their respective successors, assigns and legal representatives, and
          nothing expressed or mentioned in this Agreement is intended or shall
          be construed to give any other person any legal or equitable right,
          remedy or claim under or in respect of this Agreement, or any
          provisions herein contained; this Agreement and all conditions and
          provisions hereof being intended to be and being for the sole and
          exclusive benefit of the Initial Purchasers, the Company, the
          Guarantors and their respective successors, assigns and legal
          representatives and for the benefit of no other person except that (i)
          the indemnities of the Company and the Guarantors contained in Section
          9 of this Agreement shall also be for the benefit of the affiliates,
          directors, officers, agents, representatives and employees of the
          Initial Purchasers and any person or persons who control any of the
          Initial Purchasers within the meaning of Section 15 of the Act or
          Section 20 of the Exchange Act and (ii) the indemnities of the Initial
          Purchasers contained in Section 9 of this Agreement shall also be for
          the benefit of the affiliates, directors, officers, agents,
          representatives and employees of the Company and the Guarantors and
          any person or persons who control the Company or any Guarantor within
          the meaning of Section 15 of the Act or Section 20 of the Exchange
          Act. No purchaser of any of the Securities from the Initial Purchasers
          will be deemed a successor because of such purchase.

<PAGE>

                                      -38-

          16. APPLICABLE LAW. THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT,
          AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND
          CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
          WITHOUT GIVING EFFECT TO ANY PROVISIONS RELATING TO CONFLICTS OF LAW.

          17. Counterparts. This Agreement may be executed in two or more
          counterparts, each of which shall be deemed an original, but all of
          which together shall constitute one and the same instrument.

<PAGE>

                                       S-1

          If the foregoing correctly sets forth our understanding, please
indicate your acceptance thereof in the space provided below for that purpose,
whereupon this letter shall constitute a binding agreement among the Company,
the Guarantors and the Initial Purchasers.

                                 Very truly yours,
                                 MAGNUM HUNTER RESOURCES, INC.

                                 By:  /s/ GARY C. EVANS
                                      ------------------------------------------
                                      Name:  Gary C. Evans
                                      Title: President and CEO

                                 MAGNUM HUNTER PRODUCTION, INC.,
                                 as Guarantor

                                 By:  /s/ GARY C. EVANS
                                      ------------------------------------------
                                      Name:  Gary C. Evans
                                      Title: Chief Executive Officer

                                 GRUY PETROLEUM MANAGEMENT CO.,
                                 as Guarantor

                                 By:  /s/ GARY C. EVANS
                                      ------------------------------------------
                                      Name:  Gary C. Evans
                                      Title: Chief Executive Officer

                                 HUNTER GAS GATHERING, INC.,
                                 as Guarantor

                                 By:  /s/ GARY C. EVANS
                                      ------------------------------------------
                                      Name:  Gary C. Evans
                                      Title: Chief Executive Officer

<PAGE>

                                      S-2

                                     TRAPMAR PROPERTIES, INC., as Guarantor

                                     By:  /s/ GARY C. EVANS
                                          --------------------------------------
                                          Name:  Gary C. Evans
                                          Title: Chief Executive Officer

                                     CONMAG ENERGY CORPORATION,
                                     as Guarantor

                                     By:  /s/ GARY C. EVANS
                                          --------------------------------------
                                          Name:  Gary C. Evans
                                          Title: Chief Executive Officer

                                     PINTAIL ENERGY, INC., as Guarantor

                                     By:  /s/ GARY C. EVANS
                                          --------------------------------------
                                          Name:  Gary C. Evans
                                          Title: Chief Executive Officer

<PAGE>

                                       S-3

The foregoing Agreement is hereby confirmed
and accepted as of the date first above written.

DEUTSCHE BANC ALEX. BROWN INC.
LEHMAN BROTHERS INC.
CIBC WORLD MARKETS CORP.
BNP PARIBAS SECURITIES CORP.
SWS SECURITIES, INC.
MONNESS, CRESPI, HARDT & CO., INC.
RBC DOMINION SECURITIES CORPORATION
SAN JACINTO SECURITIES, INC.
FROST SECURITIES, INC.
RYAN BECK & CO., LLC
HARTSFIELD CAPITAL SECURITIES, INC.

By: Deutsche Banc Alex. Brown Inc.

By: /s/ CARL MAYER
    --------------------------------
    Name:  Carl Mayer
    Title: Managing Director

By: /s/ MARK FEDORCIK
    --------------------------------
    Name:  Mark Fedorcik
    Title: Director

<PAGE>

                                   SCHEDULE I

                                                     Principal Amount of
Initial Purchaser                                    Securities To Be Purchased
-----------------                                    --------------------------

Deutsche Banc Alex. Brown Inc.                       $153,000,000
Lehman Brothers Inc.                                   75,000,000
CIBC World Markets Corp.                               48,000,000
BNP Paribas Securities Corp.                            7,500,000
SWS Securities, Inc.                                    3,000,000
Monness, Crespi, Hardt & Co., Inc.                      3,000,000
RBC Dominion Securities Corporation                     3,000,000
San Jacinto Securities, Inc.                            3,000,000
Frost Securities, Inc.                                  1,500,000
Ryan Beck & Co., LLC                                    1,500,000
Hartsfield Capital Securities, Inc.                     1,500,000

                                                     _________________________

Total ............................................   $300,000,000

<PAGE>

                                   SCHEDULE II

                               Current Guarantors

     1.  Magnum Hunter Production, Inc.
     2.  Gruy Petroleum Management Co.
     3.  Hunter Gas Gathering, Inc.
     4.  Trapmar Properties, Inc.
     5.  Conmag Energy Corporation
     6.  Pintail Energy, Inc.

<PAGE>

                                  SCHEDULE III

                              Additional Guarantors

     1.  Prize Operating Company
     2.  PEC (Delaware), Inc.
     3.  Prize Energy Resources, L.P.
     4.  Oklahoma Gas Processing, Inc.

<PAGE>

                                   SCHEDULE IV

                              Current Subsidiaries

<TABLE>
<CAPTION>
                      Name                         Jurisdiction                      Stockholder
                      ----                         ------------                      -----------
<S>                                                 <C>           <C>
1.  Magnum Hunter Production, Inc.                    Texas       Magnum Hunter Resources Inc. (100%)
2.  Gruy Petroleum Management Co.                     Texas       Magnum Hunter Resources Inc. (100%)
3.  Hunter Gas Gathering, Inc.                        Texas       Magnum Hunter Resources Inc. (100%)
4.  Trapmar Properties, Inc.                          Texas       Magnum Hunter Resources Inc. (100%)
5.  Conmag Energy Corporation                         Texas       Magnum Hunter Resources Inc. (100%)
6.  Inesco Corporation                                Texas       Magnum Hunter Resources Inc. (100%)
7.  SPL Gas Marketing Inc.                            Texas       Magnum Hunter Resources Inc. (100%)
8.  Midland Hunter Petroleum                         Wyoming      Magnum Hunter Resources Inc. (100%)
      Limited  Liability Company
9.  Hunter Butcher International                     Wyoming      Magnum Hunter Resources Inc. (51%)
      Limited Liability Company                                   Bill Butcher t(49%)
10.  Canvasback Energy, Inc.                         Delaware     Magnum Hunter Production, Inc. (100%)
11.  Redhead Energy, Inc.                            Delaware     Canvasback Energy, Inc. (100%)
12.  Pintail Energy, Inc.                            Delaware     Magnum Hunter Production, Inc. (100%)
13.  Pintail Oil & Gas, Inc.                          Texas       Magnum Hunter Production, Inc. (100%)
</TABLE>

<PAGE>

                                   SCHEDULE V

                        Options, Warrants and Investments

WARRANTS OUTSTANDING:

Warrants to purchase an aggregate of 644,749 shares of the Company's common
stock were outstanding at December 31, 2001 (some may have been exercised since
that date). These warrants, which were issued by the Company to officers or
directors of the Company, are exercisable at a price of $6.50 per share until
December 31, 2003.

WARRANTS FOR WHICH RECORD DATE HAS BEEN DECLARED:

The Company approved the distribution to its stockholders of record on January
10, 2002, of one warrant for every five shares of common stock at an exercise
price of $15.00 per share. The Company has filed a registration statement with
the SEC covering the warrants and the shares underlying the warrants.

OPTIONS OUTSTANDING:

Options to purchase an aggregate of 5,217,584 shares of the Company's common
stock were outstanding at December 31, 2001 (some may have been exercised since
that date). These options, which were issued by the Company to directors,
officers or employees of the Company, have exercise prices ranging from $2.50
per share to $12.00 per share and expiration dates ranging from April 28, 2002
to December 12, 2011.

CONVERSION RIGHTS:

1996 Series A Convertible Preferred Stock ("TCW Preferred Stock") The shares of
TCW Preferred Stock are convertible into shares of common stock of the Company
at a conversion price of $5.875 per share (subject to various adjustments).
Beginning in December 1998, the Company has an option, if certain conditions are
satisfied, to exchange shares of the TCW Preferred Stock into convertible
subordinated debentures of equivalent value or into shares of Common Stock. The
holders also have the right to require the Company to redeem all or any part of
the TCW Preferred Stock upon certain sales of all or substantially all of the
Company's assets or upon changes in control.

INVESTMENTS:

The Company owns, directly or indirectly, the equity interests further described
below:

<PAGE>

                                      -2-

          a.   1,833,771 Units of TEL Offshore Trust are owned by the Company or
               by the Company's wholly-owned subsidiary, Canvasback Energy, Inc.

          b.   A 30% Membership Interest in NGTS, LLC, a Texas limited liability
               company, is owned by the Company's wholly-owned subsidiary Hunter
               Gas Gathering, Inc.

          c.   9,706 shares of Swanson Consulting Services, Inc., a Texas
               corporation, are owned by the Company's wholly-owned subsidiary
               Magnum Hunter Production, Inc.

          d.   A 1% General Partnership interest in Mallard Hunter L.P. is owned
               by the Company's wholly-owned subsidiary Magnum Hunter
               Production, Inc.

          e.   3.6 million shares of Aurion Technologies Inc., a Delaware,
               corporation, are owned by the Company's wholly-owned subsidiary
               Gruy Petroleum Management Company.

     One or more wholly-owned subsidiaries of the Company owns common stock of
     the Company, 10% Senior Notes due 2007 of the Company, and 1996 Series A
     Convertible Preferred Stock of the Company.

<PAGE>

                                   SCHEDULE VI

                  Dividends and Distributions and Other Matters

The Company has paid dividends on its 1996 Series A Convertible Preferred Stock
in accordance with the terms thereof.

The Company approved the distribution to its stockholders of record on January
10, 2002, of one warrant for every five shares of common stock at an exercise
price of $15.00 per share. The Company has filed a registration statement with
the SEC covering the warrants and the shares underlying the warrants.

In March 2002, Bluebird Energy, Inc., a former subsidiary of the Company,
transferred its assets to a new wholly-owned subsidiary, Canvasback Energy, Inc.
Canvasback Energy, Inc. in turn transferred to a new wholly-owned subsidiary,
Redhead Energy, Inc., the 10% Senior Notes of the Company received by it from
Bluebird Energy, Inc. Also in March 2002, Redhead Energy, Inc. entered into a
credit facility and borrowed money thereunder, and pledged its assets as
security; Redhead's obligations were guaranteed by Canvasback Energy, Inc.
Redhead used proceeds of the credit facility borrowings to purchase additional
10% Senior Notes of the Company from Magnum Hunter Production, Inc.

<PAGE>

                                  SCHEDULE VII

                               Registration Rights

None

<PAGE>

                                  SCHEDULE VIII

                  Material Assets of Unrestricted Subsidiaries

1.       1,000,000 shares of 1996 Convertible Preferred Stock of the Company.

2.       approximately $10.5 million principal amount 10% Senior Notes due 2007
         of the Company

3.       $2,500,000 Promissory Note from Durango Resources Corporation and
         Swanson Consulting Services, Inc.

4.       302,950 shares of common stock of the Company

5.       1,725,471  units of beneficial interest in TEL Offshore Trust

<PAGE>

                                                                      Exhibit A

                            FORM OF JOINDER AGREEMENT

          JOINDER AGREEMENT, dated as of March 15, 2002, by each of the
undersigned, pursuant to the Purchase Agreement, dated as of March 13, 2001,
among Magnum Hunter Resources, Inc., as Issuer, the guarantors party thereto and
Deutsche Banc Alex. Brown Inc. and the other initial purchasers named therein,
as initial purchasers (as amended from time to time, the "Purchase Agreement").
Terms defined in the Purchase Agreement and used herein without definition have
the meanings given to them in the Purchase Agreement.

          B. Each of the undersigned hereby acknowledges that it has received
and reviewed a copy of the Purchase Agreement and acknowledges and agrees that,
pursuant to this Joinder Agreement, it hereby becomes party to Purchase
Agreement as a Guarantor, bound by all the covenants, agreements,
representations, warranties and acknowledgments applicable to a Guarantor in the
Purchase Agreement.

          C. The address and jurisdiction of incorporation of each of the
undersigned is set forth below its name on the signature pages hereto.

          D. This Joinder Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York, without regard to the
principles of conflicts of laws thereof.

<PAGE>

                                      -2-

                  IN WITNESS WHEREOF, each of the undersigned has caused this
Joinder Agreement to be duly executed and delivered by its proper and duly
authorized officer as of the date set forth below.

                                       PRIZE OPERATING COMPANY

                                       By:  ____________________________________
                                            Name:
                                            Title:

                                       PEC (Delaware), INC.

                                       By:  ____________________________________
                                            Name:
                                            Title:

                                       PRIZE ENERGY RESOURCES, L.P.

                                       By: Prize Operating Company,
                                             its General Partner

                                       By:  ____________________________________
                                            Name:
                                            Title:

                                       OKLAHOMA GAS PROCESSING, INC.

                                       By:  ____________________________________
                                            Name:
                                            Title:

<PAGE>

                                                                     Exhibit B

                     [Form of Registration Rights Agreement]

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