Texas

In Texas, the Company continues to assess its acreage position in the Barnett Shale. To date, Marathon has leased approximately 80,000 net acres in Hamilton and Bosque counties. One core evaluation well and seven horizontal wells have been drilled. Completion operations and
assessments are in progress.

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. Since Marathon remapped these sands and increased drilling activity in 2000, gross resources of more than 320 billion cubic feet of gas have been identified. Approximately 115 net wells have been drilled at Mimms Creek since 2000. Additional development drilling is planned for 2007 through 2009.

Marathon also focuses its exploration activity in East Texas on the Cotton Valley Carbonate and Deep Bossier reservoirs, with plans to drill nine gross (five net) exploration wells in 2007.