Seven Seas Unable to Secure Funding to Test Escuela 2 Well

Seven Seas Petroleum has been unsuccessful in securing additional financing to test the Escuela 2 exploration well. The Escuela 2 well is located in Colombia's Magdalena Basin. Ecopetrol had extended the Deep Dindal association contract's first year exploration period until October 31, 2003. This extension was conditioned on the Company securing and providing proof of the necessary funds to test the Escuela 2 well by September 1, 2003.

Since funding has not been obtained, it is likely that the Company will be required to relinquish the Deep Dindal association contract unless Ecopetrol provides a further extension by October 31, 2003. If the contract is relinquished, the Company will be obligated to plug and abandon the well.