Offshore staff

HOUSTON -- Mariner Energy has completed the sale of its 20% working interest in the Cottonwood project in Garden Banks block 244, effective Nov. 1, to Petrobras America, for $31.8 million.

Cottonwood is approximately 240 mi (386 km) southwest of New Orleans in 701 m (2,300 ft) of water.

As a result of the transaction, Mariner says it will not be required to fund approximately $21 million of development costs necessary to establish first production, currently estimated to occur in 1Q 2007.

According to Mariner, it acquired its interest in the project from Petrobras in April 2005 pursuant to an arrangement whereby Mariner allowed Petrobras access to the rigNoble Lorris Bouzigard, which Mariner has under long-term contract. Mariner participated with Petrobras in two sidetrack wells on the project.

"This transaction represents a successful example of our efforts to leverage our deepwater drilling rig contracts to create high-quality investment opportunities," says Scott Josey, chairman, CEO and president of Mariner.

12/06/06