Shell to Sell Michigan Properties to Merit Energy

Shell Exploration & Production Company has entered into a Purchase and Sale Agreement with Merit Energy Company for the sale of all of SEPCo's exploration, production and related assets in Michigan. The sales price is $445 million. The Michigan asset sale is part of the previously announced target of some $2 billion in annual average divestments from the businesses within the Royal Dutch/Shell Group of Companies.

SEPCo advised its employees and Michigan officials earlier this year that it would market its Michigan properties for sale through a competitive bidding process. This process was completed during the first week of September.

Subject to further due diligence by the purchaser, the parties expect to close the transaction by early December 2003.