Powder River Fact Sheet (May v01).indd by chriskelsay


									                       Marathon Facts                                                                         Powder River Basin

                                                                                                             May 2009
  Developing Coalbed Natural Gas
                                                                                                       Marathon Oil Corporation
  Managing Environmental Resources for Multiple Uses                                                       2008 At A Glance
                                                                                                        (data as of 12/31/2008)
  Supporting Economic Growth and Community Involvement                                            Revenues:
                                                                                                   $77 billion
Marathon in Wyoming
 Marathon has been producing oil and natural gas in Wyoming for more than 95
                                                                                                  Net Income:
 years. The Company holds 300,000 net acres in Wyoming’s coalbed natural gas
                                                                                                   $3.5 billion
 resources in the Powder River Basin, most of which the Company operates.                         Capital Expenditures:
                                                                                                   $7.1 billion
 During the 12 months ended December 2008, Marathon’s net sales in the Basin
 averaged 87 million cubic feet per day (mmcfd), which represents approximately                   Net Liquid Hydrocarbon Sales:
 19 percent of the Company’s U.S. gas sales. Development continues in the Fairway                  211 mbpd
 and Sheridan areas, with more than 77 gross wells planned for 2009.                              Net Natural Gas Sales:
                                                                                                   1,016 mmcfd
Coalbed Natural Gas
 Coalbed natural gas is an important, clean energy resource that provides a cost-                 Net Proved Liquid Hydrocarbon
 effective and abundant domestic source of energy to fuel America’s growth, and                   and Natural Gas Reserves:
 power our homes and businesses. Because of the way coalbed natural gas is                         1.2 billion boe
 produced, these operations also provide a source of much needed fresh water. In                  Net Proved Bitumen Reserves:
 fact, the water produced from coalbed natural gas operations is suitable for nearly               388 million barrels
 all beneficial uses and is commonly used for domestic drinking water supply,
 livestock watering, and can be used for irrigation on suitable soils.                            Refining Capacity:
                                                                                                   1,016,000 bpd
                  MONTANA                                                                         Refined Product Sales:
                                               BAKKEN                                              1.35 mmbpd


                                     POWDER RIVER

                          BIG HORN

                                            WYOMING            SOUTH
                               WIND RIVER
        IDAHO                                CASPER


     SALT LAKE                                        JULESBERG
                                PICEANCE              DENVER



NYSE: MRO                                              Marathon Oil Corporation +1 713-629-6600                   www.marathon.com
                                                                                                                                        Powder River Basin

Environmental Stewardship
Studying, planning and working to protect and preserve our environment is the way we do business. Responsible
environmental management includes understanding current land uses and providing additional natural resources to
communities and landowners. Environmental management ranges from providing water for irrigation, livestock and
wildlife to drink, to planting grazing grasses over well pads and pipelines during reclamation phases. Marathon’s efforts
to create friendly wildlife habitats have been recognized by the Wyoming Game and Fish Department.

Because we are dedicated to the safety of our employees, contractors, communities and environment, we have specific
safety commitments. Our commitment to health and safety includes training and certification programs, special
equipment, meetings and communication with all parties involved with our operations. Marathon’s safety culture is
distinguished by the fact that we measure and promote safety performance for both employees and contractors.

About Marathon
Marathon is the fourth-largest U.S.-based fully integrated international energy company engaged in exploration and
production; oil sands mining; integrated gas; and refining, marketing and transportation operations. The Company
has exploration and production activities in the United States, Angola, Canada, Equatorial Guinea, Gabon, Indonesia,
Ireland, Libya, Norway and the United Kingdom, and oil sands mining interests in Alberta, Canada. Marathon has
developed integrated gas projects that are linking stranded natural gas resources with key demand areas. Marathon is
the fifth-largest refiner in the U.S. and the Company’s retail marketing system comprises approximately 6,200 locations
in 18 states.

                                                                                                                   Typical Cased Through Well Multiple Coal
  Typical Multizone Coalbed Natural Gas Well Diagram                                                               Completion Wasatch/Ft. Union

  This diagram at right shows how a modern coalbed natural gas well is drilled to release the water
  and natural gas.                                                                                                                      Wellhead

  Each individual well now drills through several target coal seams instead of drilling separate                                        Surface Casing
  borings into each seam. This environmentally friendly method of development creates less surface                                      Production Casing
  disturbance at the well site than traditional methods.
  After drilling is completed, steel casing is installed and cement is pumped down through the casing
  and back up the exterior to form a seal between the casing and the rock. The seal isolates the well
  bore from shallow waterbearing zones.
  A separate rig then lowers a special tool that perforates the well casing, cement and coal seams                                      Coal 1
  allowing removal of natural gas and water. A submersible pump is inserted near the bottom of the
  well bore to pump water up through the tubing to a permitted water management system. Pumping
  the water reduces the hydrostatic pressure, which releases natural gas from the coal. The natural                                     Perforations
  gas flows up through the space between the casing and tubing. It is gathered through pipelines to
  compression facilities before being transported to the marketplace.                                                                   Coal 2


This Fact Sheet contains forward-looking statements about our Powder River Basin development activities.                                Coal 3
Where, in any forward-looking statement, the Company expresses an expectation or belief as to future results,
such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, there
can be no assurance that the statement of expectation or belief will result or be achieved. These statements are
subject to risks and uncertainties that could cause actual results to differ materially from those expressed or                         Perforations
implied by such statements. In accordance with the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, Marathon has included in its Annual Report on Form 10-K for the year ended December 31,                             Coal 4
2008, and subsequent Forms 8-K, cautionary language identifying important factors, though not necessarily all
such factors, that could cause future outcomes to differ materially from those set forth in the forward looking
statements. Copies of these reports are available at www.marathon.com or by contacting Marathon’s Investor
Relations Office at +1 713-296-4171. The Company assumes no obligation to update the information in this Fact
Sheet.                                                                                                                                  Electric Submersible Pump
                                                                                                                                        and Motor

                                                                                                                                        Total Depth approximately
                                                                                                                                        200’ below lowest coal
Contact Information:           Marathon Oil Corporation              Marathon Oil/Pennaco Energy
                               5555 San Felipe Road                  3601 Southern Drive
                               Houston, Texas 77056, USA             Gillette, Wyoming 82718, USA
                                                                     +1 307-685-5100

NYSE: MRO                                                        Marathon Oil Corporation +1 713-629-6600                                  www.marathon.com

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