Pacific Energy May Return Platform Eureka to Active Status

Pacific Energy Resources has entered into discussions with Aera Energy LLC regarding a possible joint venture for the return of Platform Eureka to production. Pacific Energy is currently in the process of completing its due diligence. While discussions are in progress, no definitive agreement, other than Confidentiality agreement, has been signed.

Platform Eureka is part of a three-platform complex operated by Aera in the Beta Unit, San Pedro Bay Area, in Federal waters nine miles offshore Long Beach, California. The complex consists of producing Platforms Eureka and Ellen and facilities Platform Elly. Platform Edith, also in the Beta Unit, is neither owned nor operated by Aera and is not included in the proposed joint venture. The Beta Field was discovered in 1976. Production started in 1981 from Platform Ellen. Production began on Platform Eureka in 1985. Peak production from the Beta Field was 20,800 barrels of oil per day in 1986. The estimated original oil in place for the Beta Field is 590,000,000 barrels of oil. Cumulative production through 2004 for Platforms Ellen and Eureka is estimated at 76,000,000 barrels of oil or approximately 13% of the original oil in place. Eureka accounted for nearly 38,000,000 barrels of oil from 1985 until the production was idled in 1999, at which time it was averaging over 4,400 barrels of oil per day. Aera and its predecessor companies have operated and maintained Platforms Eureka, Ellen and Elly since they were installed in the 1980's.