On August 2, 2007, St. Mary Land & Exploration Company (“St. Mary”) entered into an agreement for the acquisition by St. Mary of oil and gas properties located in South Texas in exchange for a purchase price of $153.1 million in cash. The parties to the agreement are St. Mary and Rockford Energy Partners II, LLC. St. Mary attributes approximately 95 BCFE of estimated proved net reserves to the properties. The agreement provides for a due diligence review of the properties by St. Mary and a scheduled closing on October 4, 2007, with the transaction to be effective under the agreement as of July 1, 2007.

This report contains forward looking statements within the meaning of securities laws. The word “estimate” and similar expressions are intended to identify forward looking statements. These statements involve known and unknown risks, which may cause St. Mary’s actual results to differ materially from results expressed or implied by the forward looking statements. These risks include such factors as the pending nature of the announced acquisition of properties in South Texas as well as the ability to complete this transaction, the uncertain nature of the expected benefits from the acquisition of oil and gas properties and the ability to successfully integrate acquisitions, volatility and level of oil and natural gas prices, unexpected drilling conditions and results, the risks of various exploration and hedging strategies, production rates and reserve replacement, the imprecise nature of oil and gas reserve estimates, drilling and operating service availability, uncertainties in cash flow, the financial strength of hedge contract counterparties, the availability of economically attractive exploration and development and property acquisition opportunities and any necessary financing, competition, litigation, environmental matters, the potential impact of government regulations, the use of management estimates, and other such matters discussed in the “Risk Factors” section of St. Mary’s 2006 Annual Report on Form 10-K/A and subsequent Quarterly Reports on Form 10-Q filed with the SEC. Although St. Mary may from time to time voluntarily update its prior forward looking statements, it disclaims any commitment to do so except as required by securities laws.