Marathon Provides Update on 3Q Interim Results

Marathon Oil has provided information on market factors and operating conditions that occurred during the third quarter of 2008 that could impact the Company's quarterly financial results. The market indicators and Company estimates noted below and in the attached schedule may differ significantly from actual results. The Company will report third quarter results on Oct. 30, 2008, and will conduct a conference call and webcast
that same day.

Exploration and Production

Liquid hydrocarbon and natural gas production sold during the third quarter is estimated to be approximately 384,000 barrels of oil equivalent per day (boepd), compared to 350,000 boepd during the second quarter 2008.

Revenues reported are based on production sold during the period which can vary from production available for sale primarily as a result of the timing of international crude oil liftings and natural gas held in storage. Liquid
hydrocarbon and natural gas production available for sale during the third quarter is expected to be approximately 388,000 boepd, above both the initial quarterly guidance of 360,000 to 385,000 boepd, and the 374,000 boepd available for sale in the second quarter of 2008.

Marathon's average liquid hydrocarbon realization for the first two months of the third quarter, as compared to
the second quarter of 2008, increased $3.01 per barrel domestically and $8.49 per barrel internationally. For the same two-month period, the average West Texas Intermediate (WTI) crude oil market price indicator was
$1.48 per barrel higher than the second quarter of 2008, and the average Dated Brent indicator increased $2.38 per barrel. The larger increase in Marathon's international liquid hydrocarbon realizations compared to Dated
Brent was largely a result of higher sales volumes for July when prices averaged about $20 per barrel higher than in August. Market prices continued to weaken in the third month of the quarter.

Marathon's domestic average natural gas realization for July and August and the average Henry Hub (HH) bid week natural gas price for the same two-month period increased slightly compared to the averages in the second quarter 2008.

Internationally, average natural gas realizations increased 54 cents per mcf in the first two months of the third quarter compared to the second quarter 2008. September sales results are expected to bring full quarter realizations for international natural gas closer to that experienced in the second quarter.

Marathon's actual crude oil and natural gas price realizations generally vary from market indicators primarily due to product quality and location differentials.

Third quarter 2008 exploration expense overall is forecast to be within previous guidance of $100 to $160 million for the quarter.

Oil Sands Mining

For the third quarter 2008, the Company estimates that its net share of bitumen production before royalties from the Athabasca Oil Sands Project (AOSP) mining operation will be approximately 27,000 barrels per day (bpd), which is higher than second quarter production and within the previous guidance of 25,000 to 28,000 bpd. During the third quarter, the royalty calculation rate applicable to bitumen production from the Muskeg River Mine increased from 1 percent of gross revenue to 25 percent of net revenue, as per applicable regulations, following the achievement of the project's payout. Marathon's synthetic crude oil sales from AOSP for third
quarter 2008 are estimated to be approximately 32,000 bpd. Marathon's average synthetic crude oil realization (excluding derivative impacts) for the first two months of the third quarter, as compared to second quarter 2008, increased $5.26 per barrel, reflecting the general market price movements during the first two months of the third quarter.

For the third quarter 2008, the Company expects a net after-tax gain of $189 million on crude oil derivative instruments intended to mitigate price risk related to sales of synthetic crude oil. The Company estimates it will
realize an after-tax loss of approximately $24 million and an unrealized after-tax mark-to-market gain of approximately $213 million. The last of these derivative instruments expire at year end 2009.


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