Marathon Oil highest bidder on 16 GoM blocks

Marathon Oil Corp. was the apparent high bidder on 16 blocks offered in the Central Gulf of Mexico Lease Sale No. 208.

Offshore staff

HOUSTON -- Marathon Oil Corp. was the apparent high bidder on 16 blocks offered in the Central Gulf of Mexico Lease Sale No. 208. Representing a total investment of approximately $62 million net to the company, 10 blocks are 100% Marathon and the remaining six blocks were bid in conjunction with partners.

The blocks cover approximately 92,000 acres (gross) in the deepwater GoM, ranging in water depths from approximately 1,500 ft to 7,500 ft (457 m to 2,286 m).

"In today's lease sale we were successful in expanding Marathon's significant position in the Lower Tertiary Play with what we believe are two high-quality prospects that complement our portfolio," says Annell Bay, senior VP of worldwide exploration for Marathon. "And, we added eight well-positioned blocks to our already strong position in the Miocene play. With an inventory of more than four years worth of prospects, we're planning an active drilling program beginning in 2010 when we will have a newbuild drilling rig on contract."

03/18/2009

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