Marathon Makes 2nd Deepwater Find on Blk 32 Offshore Angola

Marathon Oil revealed that its subsidiary, Marathon International Petroleum Angola Block 32 Limited, has participated in the second deepwater discovery on Block 32 offshore Angola, operated by TOTAL Exploration and Production Angola (Block 32 Ltd). The Canela-1 discovery well, along with the nearby Gindungo discovery moves Block 32 closer towards establishing a commercial development. This discovery is the fifth significant success in Marathon's deepwater Angola exploration program on Blocks 31 and 32.

The Canela-1 discovery well which was drilled by the Pride Angola is located approximately 140 kilometers (87 miles) off the Angolan coast in 1,540 meters (5,053 feet) of water. The well was drilled to a total depth of 3,650 meters (11,975 feet) and successfully tested at a rate of 6,800 barrels of light oil per day. Canela is located 15 kilometers (9 miles) southeast of the previously announced Gindungo discovery, and 20 kilometers (12 miles) west of the Lirio Field in Block 17.

"Marathon is very encouraged by the results of the Canela well and we will be working closely with our partners on drilling plans to further evaluate the resource potential of Block 32," said Philip Behrman, Marathon senior vice president of Worldwide Exploration.

Current plans call for drilling the next well on Block 32 around midyear 2004. The concessionaire of Block 32 is Sonangol, Angola's state-owned oil company. Marathon holds a 30 percent interest in Block 32, along with the operator TOTAL with 30 percent, Sonangol P&P with 20 percent, Esso Exploration and Production Angola (Block 32) with 15 percent and Petrogal with 5 percent.