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Gulf of Mexico

The Gulf of Mexico continues to be a core area for Marathon, with promising development and exploration potential. The Company currently has interests in seven producing fields and eight platforms, of which Marathon operates four.

Ewing Bank
(Lobster, Oyster and Arnold): Located 130 miles south of New Orleans, Louisiana, this 1994 development serves as a production hub platform. A significant contributor to the Company's Gulf of Mexico portfolio, the Lobster platform stands in 775 feet of water.

Neptune
(Atwater Valley Blocks 573, 574, 575, 617 & 618): Discovered in 1995, Neptune was the first discovery in the Atwater Foldbelt trend, approximately 120 miles off the coast of Louisiana. Marathon holds a 30 percent working interest in Neptune, which consists of five Outer Continental Shelf blocks. Neptune was sanctioned for development in 2005, and first production is projected to commence by early 2008. The field will be developed with seven subsea wells tied back to a
mini-tension-leg platform (TLP). The mini-TLP will be situated above the Sigsbee Escarpment in approximately 4,500 feet of water. The subsea wells will be located below the escarpment in approximately 6,200 feet of water. The facility will have a design capacity to produce up to 50 thousand barrels per day (mbpd) of oil and 50 million cubic feet per day (mmcfd) of gas. The oil and gas will be exported via the existing Caesar and Cleopatra trunk lines.

Petronius & Perseus
Marathon holds a 50 percent working interest in Petronius/Perseus (Viosca Knoll Blocks 786/830), approximately 130 miles southeast of New Orleans, Louisiana. Chevron USA holds the remaining 50 percent interest and serves as operator.

The Petronius development consists of a compliant tower structure with production and drilling facilities. The platform was set over six predrilled wells, drilled to several sandstone reservoirs approximately 10,000 feet below sea level. The tower is 2,001 feet tall and is installed in 1,754 feet of water. Petronius is capable of providing processing and transportation services to adjacent third-party fields.

Perseus is approximately five miles from Petronius. The initial Perseus well was drilled to a total measured depth of 13,134 feet and encountered 166 feet of net oil pay. A long-reach development well was drilled from the Petronius platform and reached total measured depth of 30,855 feet. First production commenced in April 2005. A second long-reach Perseus development well commenced drilling in late 2005 and was drilled to a total measured depth of 31,481 feet.

Stones
In 2005, Marathon participated in the deepwater Stones well on block Walker Ridge 508. This well targeted the Lower Tertiary, and while no specific information has been disclosed, it did discover hydrocarbons in sufficient quantity that an appraisal well is being planned. Marathon is a 30 percent owner in the Stones discovery.

Troika
Ranked among Marathon's largest domestic oil fields, the Troika subsea development is 150 miles south of New Orleans, Louisiana. Oil and gas are piped 14 miles to Shell's Bullwinkle platform, where the fluids are processed for sale. Marathon has a 50 percent working interest in the field. Shell holds the remaining 50 percent working interest and serves as the operator.

In 2007, Marathon announced a deepwater discovery well on Green Canyon Block 244. The Droshky discovery well (formerly named Troika Deep) is two miles south of the Troika Field
Production System in approximately 2,900 feet of water. The initial well was drilled to a total depth of 21,190 feet and encountered 250 feet of net oil pay, while the lateral sidetrack encountered approximately 300 feet of net oil pay. All pay intervals are Upper Miocene in age. Preliminary analysis suggests that Droshky holds 30 to 32 degree API fluids, similar to the Troika Field. Based upon the results of the three well penetrations, Marathon estimates the Droshky discovery holds a mean recoverable resource of 80 to 90 gross million barrels of oil equivalent (mmboe). The Company is currently evaluating development options. Marathon holds a 100 percent working interest in the Droshky prospect.

Ursa & Princess
Marathon holds a 3.5 percent overriding royalty interest in the Ursa and Princess developments. The discovery yielded first production in 2002 from a single well drilled from the Ursa platform. Development of Princess continues, with additional wells being drilled as subsea tie-backs to Ursa. The Princess Field, located off the Northern flank of Ursa, could hold in excess of 200 mmboe gross hydrocarbons.

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