DENVER, April 28 /PRNewswire-FirstCall/ -- Cimarex Energy Co. (NYSE: XEC) today announced that first-quarter 2009 oil and gas production volumes averaged 489.0 million cubic feet equivalent per day (MMcfe/d), up 3% from the first-quarter 2008 average of 476.2 MMcfe/d.

First-quarter 2009 oil production grew 10% over last year's first quarter to an average of 25,086 barrels per day. Gas production in the latest quarter averaged 338.5 million cubic feet per day (MMcf/d), flat with the first-quarter 2008 average of 339.7 MMcf/d.

The increase in oil production stems from completing horizontal oil wells in the Permian Basin which were carry-over activity from 2008. Flat year-over-year gas production reflects an overall reduction in drilling and completion activity. As a result of weakening commodity prices, Cimarex has continued to scale back drilling. During March 2009, the company was operating just three drilling rigs, down from 43 during the third quarter of 2008 and 22 at year-end. For further information about first-quarter drilling see exploration and development discussion below.

First-quarter 2009 average realized prices are expected to be in the range of $3.75 to $3.85 per thousand cubic feet (Mcf) of gas and $35.45 to $35.95 per barrel of oil. Gas prices slid throughout the quarter, with March 2009 prices averaging only $3.20 per Mcf.

Compared to year-end 2008, by March 31, 2009 gas prices had dropped 37%. Period end prices are used in the full-cost accounting ceiling test limitation on the carrying value of oil and gas assets(1). Because of the gas price decrease, which is only partially offset by a 20% oil price increase, the Company's preliminary analysis has determined it will have a first-quarter 2009 after-tax full-cost ceiling test impairment of $475-$575 million(1).

Cimarex will release its first-quarter 2009 financial results on Tuesday, May 5, 2009, before the market opens.

Exploration and Development Highlights

Cimarex drilled 41 gross (24 net) wells during the first quarter of 2009, completing 95% as producers. The sharply reduced operated rig count resulted in drilling 68% fewer wells in the first quarter of 2009 as compared to 2008. Currently, Cimarex has three operated rigs drilling in western Oklahoma and one in the Gulf Coast.

Mid-Continent

Cimarex drilled 26 gross (11 net) wells in the first quarter of 2009, completing 96% as producers.