Cimarex Energy Co. is an independent oil and gas exploration and production company. The Company’s operations are mainly located in Texas, Oklahoma, New Mexico, Kansas, Louisiana and Wyoming. As of December 31, 2008, proved oil and gas reserves totaled 1.3 trillion cubic feet equivalent (Tcfe), consisting of 1.1 trillion cubic feet (Tcf) of gas and 45.2 million barrels of oil and natural gas liquids. Of total proved reserves, 80% are gas and 82% are classified as proved developed. During the year ended December 31, 2008, production averaged 485.8 million cubic feet equivalent (MMcfe) per day, consisting of 348.2 million cubic feet (MMcf) of gas per day and 22,937 barrels of oil per day. The Company operates the wells that account for 83% of its total proved reserves and approximately 81% of production.