Marathon awarded Bone Bay block operatorship

Marathon Indonesia New Ventures has been awarded a 49% interest and operatorship in the Bone Bay block offshore Indonesia.

Offshore staff

HOUSTON -- Marathon Indonesia New Ventures has been awarded a 49% interest and operatorship in the Bone Bay block offshore Indonesia.
The Bone Bay block is approximately 1.23 million acres (or equivalent to 213 Gulf of Mexico lease blocks) predominantly offshore southern Sulawesi Island, in the Bone Bay region. It is a high potential, under-explored area with water depths ranging from 165 to 6,500 ft (50 to 1981 m), the company says.

Marathon expects to enter into a Production Sharing Contract (PSC) with the Indonesian Government before the end of 2008. Current exploration plans call for the acquisition of 2D seismic starting in 2009, followed by drilling in 2011. Kaizan Oil and Gas, a subsidiary of Black Gold Energy, was awarded the remaining 5% interest in the Bone Bay block.

The block is about 200 mi (322 km) southeast of Marathon's Pasangkayu block, which was awarded in 2006. Marathon subsidiary Marathon International Petroleum Indonesia holds a 70% interest and operatorship in the PSC for the Pasangkayu block, a 1.2-million acre block located predominantly offshore the island of Sulawesi in the Makassar Strait, directly east of the Kutei basin oil and gas production region. Water depth of the block ranges up to 7,200 ft (2,195 m).

At Pasangkayu, Marathon and partner Talisman have a work commitment of four wells. The company completed 3D seismic acquisition in 2008, and led a consortium of six companies to secure a two-year rig contract for drilling in Indonesia. Transocean's ultra deepwater drillshipGlobal Santa Fe Explorer will begin operations in Indonesia in 2010. The consortium has the option to extend this rig contract as needed.

10/22/2008

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