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The Wiser Oil Company Announces Gulf of Mexico Exploration Initiative and Results of Federal Lease Sale.

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DALLAS--(BUSINESS WIRE)--March 29, 2001

The Wiser Oil Company (NYSE: WZR) today announced it has entered into an Exploration Agreement and a Joint Venture Agreement with Remington Oil and Gas Corporation (NASDAQ: ROIL) to participate in multiple Gulf of Mexico exploration and development activities over the next several years. Remington is the operator under both agreements and Magnum Hunter Resources, Inc. (AMEX: MHR) is also a participant in these ventures.

Exploration Agreement

The Exploration Agreement provides for Wiser to participate with a 12.5% working interest in drilling six offshore Gulf of Mexico exploration prospects in 2001. All six prospects are located on the shelf (water depth of less than 200 feet) near existing infrastructure and are based on 3-D seismic. The first prospect, Eugene Island Block 302, will begin drilling next month. Wiser's 2001 capital outlay under the Exploration Agreement is expected to total approximately $9.8 million.

Joint Venture Agreement

The Joint Venture Agreement provides for Wiser to participate with a 25% working interest in the acquisition, exploration and development of prospects in the Central Gulf of Mexico. The initial result of this effort was the Company's participation in yesterday's Federal OCS Lease Sale No.178-1. Through the Joint Venture, the Company was the apparent high bidder on 23 out of 31 total bids for leases on the shelf covering approximately 111,000 gross (23,000 net) acres. Provided that the bids are accepted by the Minerals Management Service, Wiser's share of the lease acquisition costs is approximately $2.5 million and the Company anticipates that exploratory drilling on these leases will begin in the fourth quarter of 2001. These prospects are also based on 3-D seismic.

Chairman and CEO George K. Hickox, Jr. commented "The agreements with Remington allow us to join a partner with a proven track record in the Gulf of Mexico and immediately direct capital into a portfolio of high quality prospects in the Gulf. Our successful bids at yesterday's OCS lease sale ensures a continued supply of prospects and allows the Company to sustain a significant allocation of capital into exploratory efforts in the Gulf over the next few years which, if successful, could significantly impact the Company. The combined effects of the Remington agreements are to accelerate our efforts to redirect Wiser into a more gas-prone region, with production profiles that are typically front-end loaded, and to provide Wiser with a more balanced exposure to commodity prices in our U.S. operations."

Mr. Hickox added, "This is an important step in our two-pronged strategy of growth in the Gulf Coast and in western Canada that was adopted when we recapitalized the company last May. It also helps us achieve our goals of increasing the percentage of our capital expenditures allocated to exploration and increasing the prospect inventory in the U.S."

The capital expenditures under both agreements are included in the Company's 2001 capital budget of $36 million, which was announced earlier this month.

Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, and the business prospects of The Wiser Oil Company, are subject to a number of risks and uncertainties that may cause the Company's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of oil and gas prices, product supply and demand, competition, government regulation or action, litigation, the costs and results of drilling and operations, the Company's ability to replace reserves or implement its business plans, access to and cost of capital, uncertainties about estimates of reserves, quality of technical data, and environmental risks. These and other risks are described in the Company's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.
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Publication:Business Wire
Date:Mar 29, 2001
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