St. Mary Provides Operations and Guidance Update

Business Wire, May 1, 2008

* Full year production guidance range increased to 108.5 to 112.5 BCFE

* Capital budget expanded based on positive results

* Permitting of wells in the North Dakota Bakken play announced

* Assessed exposure to Haynesville shale acreage increased to 50,000 net acres

DENVER -- St. Mary Land & Exploration Company (NYSE: SM) today provides an update of the Company's significant operations and financial guidance.

During the first quarter of 2008, St. Mary participated in the completion of over 120 drilling and recompletion projects, not including coalbed methane operations. The Company had between 13 and 15 rigs operating throughout the quarter. The Company also invested approximately $53 million in the acquisition of proved and unproved oil and natural gas properties, the majority of which relates to Cotton Valley drilling inventory in East Texas. Operations for 2008 are proceeding on or ahead of plan. During the quarter the Company made progress in several key plays that are expected to generate further growth opportunities.

MANAGEMENT COMMENTS

Tony Best, President and CEO, commented, "I am pleased with the growth and performance of our inventory. The Woodford shale in the Arkoma Basin, the Cotton Valley sand and Haynesville shale plays in the ArkLaTex, and the North Dakota Bakken are some of the most active and exciting areas in the oil and gas industry currently, and St. Mary has meaningful exposure to all of them. Our operating teams are doing a great job managing our current assets, as demonstrated by lower per unit LOE in the first quarter and our increase to production guidance for the full year. We continue to focus on expanding our inventory and executing on our business plan - we are off to a great start this year and I believe the outlook for the remainder of the year is bright."

HORIZONTAL WOODFORD PROGRAM UPDATE

In the Woodford Shale, St. Mary continues to see positive results in the play. Well results are improving and the Company's costs to drill and complete operated wells are better than the costs of industry peers. The average estimated ultimate recovery (EUR) for the last 10 operated wells with meaningful production data is 2.7 BCFE to 3.0 BCFE. On the cost front, the Company's three most recent wells were drilled and completed for between $4.0 and $4.4 million per well. These wells had laterals approximately 3,600 feet in length and utilized the multistage fracture stimulations that are common throughout the play. During the quarter, the Company announced that it was increasing budgeted capital investment in the Woodford shale by $20 million dollars, which allows for two rigs to run continuously throughout the year with a third rig operating periodically.

ARKLATEX REGION UPDATE

St. Mary continues to be active in its operated Cotton Valley program at Carthage Field in East Texas. The Company's second horizontal well in the program is currently drilling and targets the Taylor sand of the Cotton Valley formation. The first horizontal well drilled by St. Mary, the Boise Southern 1-H (SM 98% WI), has averaged 4.0 MMCF per day with minimal decline for the last month. As previously announced, St. Mary expects to drill 6 horizontal and 14 vertical wells at Carthage Field through the rest of the year utilizing a multi-rig program. The Company plans to drill its first well on acreage from the previously announced bolt-on acquisition in the Carthage area in the second quarter. St. Mary also continues to see encouraging results from its participation in both horizontal and vertical drilling and recompletion activities at Elm Grove Field in Bossier Parish, Louisiana.

Several operators have made comments recently regarding the potential of the Haynesville shale. Most of those operators have discussed an area in northern Louisiana centered in Caddo, De Soto, and Bossier Parishes. St. Mary has previously disclosed that it owns roughly 10,000 net acres in this general area. After conducting a more thorough review of its acreage position, the Company has determined that it is exposed to roughly 50,000 net acres with Haynesville shale potential throughout the broader ArkLaTex region.

NORTH DAKOTA BAKKEN ACTIVITY

St. Mary announces that it has permitted 22 wells in the North Dakota Bakken play, including 21 wells in the Powers Lake prospect area that straddles Mountrail and Burke Counties in North Dakota. St. Mary has increased its leasehold in the North Dakota Bakken to approximately 37,000 net acres. Activity in the play has been moving toward the Company's land position and drilling activity is underway around our acreage. The Company plans to drill two to three wells in the second half of 2008.

CAPITAL INVESTMENT UPDATE

The Company's current capital investment budget by region for exploration and development activities is as follows:

                >
Exploration &Development Capital










                >
($ in millions)










                >











ArkLaTex        >
$161










Mid-Continent   >
155










Permian         >
132










Rocky Mountain  >
130










Gulf Coast      >
83










TOTAL           >
$661

The budget above includes an additional $20 million in the Mid-Continent region for increased drilling in the horizontal Woodford shale in the Arkoma Basin, as well as additional capital for testing of the Pearsall shale in South Texas and additional leasehold in West Texas.