Cimarex Energy Co. (NYSE: XEC).(Interview)

Publication: Oil and Gas Investor

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COPYRIGHT 2005 Hart Publications, Inc.

Oil and Gas Investor: You bought Magnum Hunter Resources in June. What was your interest in Magnum's assets?

Merelli: We saw a nice base of potential drilling in the Permian; it looked like we could expand our moderate-risk drilling there. That is the main reason. It also had interesting properties in the Texas Panhandle and western Oklahoma. Magnum Hunter was an acquisition-oriented company--they were very busily buying things, not intensely focusing on drilling opportunities, though in the Permian, they had a growing drilling group that was very successful.

In the Gulf of Mexico, they have a joint venture with Remington Oil and Gas Corp. and a very small group working on interests in approximately 240 blocks. I always felt like we've wanted some activity in the Gulf of Mexico. We won't just jump in there, but this gives us a nice ticket to the dance.

OGI: What are Cimarex's core areas now?

Merelli: The Permian,...

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