Seven Seas to Sell Producing Properties

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Seven Seas to Sell Producing Properties
    HOUSTON, Dec. 14 /PRNewswire-FirstCall/ -- Seven Seas Petroleum Inc.
(Amex: SEV) announced that its Colombian subsidiaries entered into an Asset
Purchase Agreement with Sociedad Internacional Petrolera S.A. ("Sipetrol") for
sale of the subsidiaries' interest in the shallow Guaduas Oil Field, inclusive
of the 40-mile Guaduas-La Dorada Pipeline effective December 13, 2002.

    Sipetrol Agreement
    Sipetrol has agreed to purchase the combined 57.7% participating interests
and related assets of Seven Seas Petroleum Colombia, Inc., GHK Company
Colombia and Petrolinson S.A. in the shallow Guaduas Oil Field.  Sipetrol is
currently a 32.9% owner of participating interest in the shallow Guaduas Oil
Field and is a party to a Joint Operating Agreement with the subsidiaries.
The basic terms are:

    * The purchase price is $20 million subject to certain adjustments and
      taxes
    * The effective time is 7:00 am on December 13, 2002
    * The Closing is contingent on obtaining governmental approvals from both
      Chile and Colombia and the consent of Chesapeake Energy Corporation
      pursuant to the Note Purchase and Loan Agreement between Chesapeake and
      the Company, among other things
    * The Closing is expected to occur in late January or early February
    * GHK Company Colombia will continue to operate the shallow Guaduas Oil
      Field pending Closing

    Auction Process
    The Company engaged CIBC World Markets ("CIBC") to provide financial
advice in late September 2002.  CIBC commenced an auction process to sell the
producing interests in the Guaduas Oil Field.  This included establishing data
rooms in Houston and in Colombia and soliciting interests from fifty
companies.  Nine companies went through the data rooms.  Bids from several
prospective buyers were received in mid- November and this process resulted in
the agreement with Sipetrol today.

    Remaining Assets and Operations
    After the sale, the only material assets of the Company and its
subsidiaries will be the rights associated with the Deep Dindal association
contract and certain Colombian tax assets.  Neither the Company nor its
subsidiaries will have sufficient cash to conduct any additional exploration
activities.
    The Company has been actively seeking to secure additional financing or
find a partner to participate in the completion of the Escuela 2 well and test
the commercial potential of the Deep Dindal prospect.  To date, the Company
has been unsuccessful in these efforts; however, the Company is continuing its
efforts to find a third party to provide the necessary financing to test the
Escuela 2 well.  Even if tested, there are no assurances that the Escuela 2
well would be productive and provide additional value.
    After December 15, 2002, the Company may be in default under the
12-1/2% $110 Million Senior Subordinated Notes.  Now that the financial
circumstances of the Company are more clearly defined, the Company will
accelerate its discussions with representatives of the Senior Subordinated
Noteholders.
    The Company has received notice from Chesapeake that it is currently in
default under its 12% $45 Million Senior Secured Notes ("$45 Million Notes").
Chesapeake as the collateral agent for the $45 Million Notes holds a lien on
the stock of all of the Company's subsidiaries and its cash accounts.

    AMEX Listing
    As previously announced Seven Seas has been notified by the American Stock
Exchange ("AMEX") that the Company fails to meet specific listing standards.
The Company previously submitted a plan to the AMEX to remedy these
deficiencies; however, based upon the present circumstances, the Company
cannot satisfy the AMEX standards
    Seven Seas Petroleum Inc. is an independent oil and gas exploration and
production company operating in Colombia, South America.

    Statements regarding anticipated oil and gas production and other oil and
gas operating activities, including the costs and timing of those activities,
are "forward looking statements" within the meaning of the Securities
Litigation Reform Act.  The statements involve risks that could significantly
impact Seven Seas Petroleum Inc.  These risks include, but are not limited to,
adverse general economic conditions, operating hazards, drilling risks,
inherent uncertainties in interpreting engineering and geologic data,
competition, reduced availability of drilling and other well services,
fluctuations in oil and gas prices and prices for drilling and other well
services and government regulation and foreign political risks, as well as
other risks discussed in detail in the Seven Seas Petroleum Inc.'s filings
with the U.S. Securities and Exchange Commission.
SOURCE Seven Seas Petroleum Inc.
http://www.sevenseaspetro.com
Company News On-Call:
http://www.prnewswire.com/comp/123145.html
CONTACT:
Daniel Drum, Investor Relations of Seven Seas
Petroleum Inc., +1-713-622-8218