ExxonMobil Sells Wandoo Field Interest

Mobil (Legendre) Pty Ltd, a subsidiary of ExxonMobil, has reached agreement to sell its 60 percent interest in the Wandoo oil field, to Vermilion Oil and Gas Australia Pty Ltd. Terms of the agreement were not disclosed. The sale is subject to the granting of all necessary regulatory approvals.

"ExxonMobil has a long history producing oil and gas in Australia," said ExxonMobil Australia Chairman Mark Nolan. "However, as part of our overall asset management program, when we believe the sale of a particular field or other producing property makes better sense, from a shareholder's perspective, than retention, we will pursue that option.

"ExxonMobil's focus in Australia, as it is around the world, is on high value assets with development or growth potential," Nolan said. "These types of assets are suited to our technological and financial capabilities and strategic priorities."

ExxonMobil is the world's leading non-government producer of oil and gas and has a significant portfolio of upstream assets in Australia. Through its Esso and Mobil subsidiaries, it is one of the largest oil and gas production and exploration companies in Australia. Over the past five years, ExxonMobil and its subsidiaries have invested more than A$2.5 billion in Australia.

"In Western Australia our interests in Gorgon and Jansz offer significant investment and development potential," stated Nolan. "We also believe there is significant potential for further development of our Bass Strait operations, and for capturing additional opportunities in the gas markets in south-eastern Australia."

ExxonMobil also operates the PNG Gas Project, which moved into the Front End Engineering and Design (FEED) phase of its development in October 2004.