Texas

In Texas, Marathon's primary production areas are: the Mimms Creek Field, located in East Texas, the field produces from the tight Bossier and Cotton Valley sands more than two miles below the surface; the Pearwood Field area, which produces from the Cotton Valley Carbonate shoal reservoirs; and the Oletha Field, which produces from the Travis Peak formation under and around Lake Limestone.

In 2009, Marathon limited its exploration activity to successfully completing the Nash-3 Cotton Valley Reef Exploration well, at an initial rate of 10 mmcfd. Exploration activity for the Deep Bossier deep tight gas play was deferred in 2009, instead focusing activity on the emerging Haynesville and Bossier Shale plays in East Texas and Louisiana.

The Company is positioned with more than 25,000 net legacy acres, with net resource potential of 100 to 150 mmboe in the Haynesville Shale. The Company drilled one gross well in 2009, with plans to complete in 2010. In 2010, Marathon plans to drill 1 to 2 Haynesville wells, holding a 100 percent working interest. Activity will focus in central and southwest Shelby County, where industry has been successful in developing both the Haynesville and Bossier Shale reservoirs.