Nuevo Energy Sells Marine 1 Permit Offshore Congo

Nuevo Energy has signed a stock sale agreement with Perenco, S.A. to sell its interest in the Marine 1 Permit, offshore the Republic of Congo, for $62 million, subject to certain consents and reviews. The sale is effective January 1, 2004 and the final sales price will be offset by working capital adjustments and net cash flow from the effective date to the closing date. Nuevo has a non-operating 50% working interest (37.5% average net revenue interest) in the Permit which includes the Yombo and Masseko Fields and a 50% interest in a floating production, storage and off-loading vessel. In 2003, production from the Permit averaged 4.8 thousand barrels of oil equivalent per day net to Nuevo.