Reach/Marathon to assess Drum

Offshore staff

ABERDEEN, UK -- Reach Exploration and Marathon Oil will investigate the potential for a well on the Drum gas-condensate prospect in UK block 16/3e.

Drum is a Mid-Jurassic tilted fault block at a subsurface depth of 4,572 m (15,000 ft), around 4.5 km (2.75 mi) southwest of the producing East Brae field. According to Reach, it has the potential to be a significant accumulation, with producing analogues 10 km (6.25 mi) to the south and south-west in the Beinn and Kingfisher fields.

Marathon will examine the feasibility of an extended reach well from the East Brae platform to test two reservoir objectives. Along with certain partners in the Brae Group, it will then have the option to take a combined 60% interest in the deep portion of 16/3e. In the event of a discovery, it would likely develop Drum via the East Brae facilities. Reach would retain 100% equity in the shallow part of the block.

12/19/2006