Texas

In Texas, Marathon's production in the active Mimms Creek Field in East Texas originates from the Bossier and Cotton Valley sands, which are challenging formations of tight rock more than two miles below the surface. Gross sales from the Marathon-operated Pearwood Field have reached 40 mmcfd since development of the Cotton Valley Carbonate shoal began in early 2005.

In 2008, development activity focused on horizontal well drilling in the Pettit formation and vertical drilling in the Travis Peak. Additional development drilling is planned for the Cotton Valley Carbonate shoal, Bossier and James Lime in other asset areas of East Texas.

Marathon also focuses its exploration activity in East Texas on the Deep Bossier reservoirs, acquiring more than 10,000 undeveloped net acres in 2008, with plans to drill several exploration wells in 2009.

The Company is also positioned with more than 25,000 net legacy acres in the emerging Haynesville Shale resource play, with initial plans for development in 2009.