Matador Resources Co.

DALLAS - January 29, 2004 - Joseph Wm. Foran, Chairman & CEO, and Scott King, Vice President - Exploration, have formed Matador Resources Company to engage in onshore oil and natural gas exploration, production, development and acquisition in the Southwestern United States. Foran and King were previously key principals in Matador Petroleum Corporation. Foran founded Matador Petroleum in 1988 starting with just $6 million in seed capital and sold it to Denver-based Tom Brown, Inc. (NYSE: TBI) in June 2003 for $388 million in an all-cash transaction.

Several other primary members of the original Matador Petroleum staff are also part of the new Matador Resources team, including Chief Engineer, Michael Ernest; Comptroller, Kathy Wayne; Properties Manager, Yvonne Hoevers; and General Counsel, Robert Muth. Together with Foran and King, this group helped build Matador Petroleum into one of the fastest growing oil and gas companies in the country prior to its sale to Tom Brown, Inc.

"The key performers and the operating philosophy that turned Matador Petroleum from a series of small drilling partnerships into a $388 million energy company are the foundation of this new organization," said Foran. "The performance of this group enabled Matador Petroleum to grow at an average annual rate of 21% over fifteen years, while keeping costs low to build strong shareholder value. We are committed to maintaining the same focus on solid technical work and financial discipline at Matador Resources that led to the success of Matador Petroleum."

Joining Foran and King in forming Matador Resources are Brad Robinson, Vice President - Engineering, and David Lancaster, Vice President - Business Development. Robinson and Lancaster were principals in the petroleum engineering consulting firm, S. A. Holditch & Associates, Inc. They were most recently with Schlumberger, following that company's 1997 acquisition of Holditch. Robinson and Lancaster joined Holditch shortly after inception and helped build the company into a well-known and respected consulting organization, with particular expertise in the characterization and stimulation of unconventional oil and gas reservoirs. The firm's founder, Dr. Stephen Holditch, is a member of the Matador Resources Board of Directors. Dr. Holditch is currently Professor and Head of the Harold Vance Department of Petroleum Engineering at Texas A&M University and a former President of the Society of Petroleum Engineers.

"We are particularly pleased to be combining our exploration and operating experience with the unconventional reservoir expertise of our colleagues formerly at Holditch & Associates," continued Foran. "In addition, we have moved quickly to add a number of excellent geoscientists and engineers to our staff. We believe our new team should match, or even surpass, the results achieved by Matador Petroleum."

"Each of us has experience in building a start-up company into a substantial and successful organization," observed Lancaster. "This collective experience will be useful in building Matador Resources."

Matador Petroleum concentrated its exploration, development, and acquisition efforts on a diversified mix of low and moderate risk activities. It grew to become the fifteenth largest producer in Southeastern New Mexico and the fourth largest in the Freestone County area of East Texas. At the time of its sale to Tom Brown, Inc., Matador Petroleum was among the twenty-five most active drillers in the United States for wells drilled at depths greater than 10,000 feet.

"We intend to focus our exploration and drilling efforts on natural gas reserves in well-established, historically productive basins," stated King. "We'll also look to acquire properties with significant reserves potential and drilling opportunities, while maintaining a low cost structure. This philosophy served shareholders well at the former Matador Petroleum, leading to significant rewards for everyone."

"Matador Resources will build its reserves base by targeting drilling locations with the potential to produce in multiple horizons from single wellbores," added Robinson. "The company will initially concentrate in East and South Texas, North Louisiana and the Permian Basin, with plans to move beyond those areas as opportunities arise. We believe this will help our prospect teams achieve superior results for investors."

Matador Resources Company was established in July 2003 and has attracted over $52 million in start-up capital from more than 200 individuals and institutions, nearly all of whom were shareholders in Matador Petroleum. The company has twenty-five employees and is headquartered in Dallas, Texas.

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