HOUSTON, June 30 /PRNewswire-FirstCall/ -- Marathon Oil Corporation
(NYSE: MRO) announced today that the Neptune development in the deepwater Gulf
of Mexico has been sanctioned by Marathon and its project partners. Neptune,
in which Marathon holds a 30 percent interest, is expected to begin production
in late 2007, ramping up to full production of approximately 50,000 gross
barrels of oil equivalent per day (14,000 net to Marathon after royalty)
during 2008. Marathon's net cost of the Neptune development is estimated at
$255 million.
"We are pleased to be moving forward with the Neptune development which
further illustrates our commitment to deliver sustainable value growth by
enhancing our base business," said Steven B. Hinchman, Marathon senior vice
president of Worldwide Production. "The Neptune development along with the
previously sanctioned developments in Norway and Equatorial Guinea are key
elements of Marathon's future defined production profile. We project this
profile to grow by an estimated compounded average growth rate of five to nine
percent between 2005 and 2008."
The Neptune development is located on the Western Atwater Foldbelt
approximately 120 miles off the coast of Louisiana. The field, which holds
estimated proved and probable reserves of between 100-150 million barrels of
oil equivalent, comprises Atwater Valley Blocks 573, 574, 575, 617 and 618 in
water depths that range from 4,200 feet to 6,500 feet.
A standalone, tension leg platform (TLP) with seven initial subsea wells
has been selected to develop Neptune. The facility will have a design
capacity to produce up to 50,000 barrels of oil and 50 million cubic feet of
gas per day. The oil and gas will be exported via the existing Caesar and
Cleopatra trunk lines.
Neptune was discovered in 1995 and was the first discovery in the Western
Atwater Foldbelt. An initial appraisal well (Neptune-2) was drilled in 1997.
Neptune-3, drilled in 2002, encountered approximately 130 feet of net pay;
Neptune-5, drilled in 2003, found 500 feet of net pay in a 1,200-foot column;
and Neptune-7, drilled in 2004, intersected 114-feet of net pay.
Marathon partners in Neptune are BHP Billiton, which holds a 35 percent
interest and serves as operator, Woodside Petroleum Limited with a 20 percent
interest, and Maxus (US) Exploration, a subsidiary of Repsol YPF, with a
15 percent interest.
This news release contains forward-looking statements concerning the
Neptune development, the timing and levels of oil and gas production, and
estimate proved and probable reserves. These forward-looking statements may
be affected by a number of factors or are based on a number of assumptions
including, among others, presently known physical data concerning size and
character of reservoirs, economic recoverability, technology development,
future drilling success, production experience, pricing, supply and demand for
petroleum products, amount of capital available for exploration and
development, regulatory constraints, timing of commencing production from new
wells, unforeseen hazards such as weather conditions, acts of war or terrorist
acts and the governmental or military response thereto, and other geological,
operating and economic considerations. In accordance with the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995, Marathon
Oil Corporation has included in its Annual Report on Form 10-K for the year
ended December 31, 2004, and subsequent Forms 10-Q and 8-K, cautionary
language identifying other important factors, though not necessarily all such
factors that could cause future outcomes to differ materially from those set
forth in the forward-looking statements.
SOURCE Marathon Oil Corporation
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Related links:
http://www.marathon.com
CONTACT:
media relations, Scott Scheffler,
+1-713-296-4102, or Paul Weeditz, +1-713-296-3910, or investor
relations, Ken Matheny, +1-713-296-4114, or Howard Thill,
+1-713-296-4140, all of Marathon Oil Corporation
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