Bone Bay PSC

Marathon Indonesia (Bone Bay) Limited

Marathon Indonesia (Bone Bay)

Limited (MIBBL), a wholly
owned subsidiary of Marathon Oil
Corporation (NYSE: MRO), is seeking
to farm out a portion of its 55%
participating interest in the Bone Bay
PSC, located offshore South East
Sulawesi. The PSC covers an area
of 4,969 sq. km. and was awarded
on November 13, 2008. Black Gold
Ventures LLC (recently acquired
by Niko Resources Ltd.) holds the
remaining equity in the Bone Bay PSC
(interest positions are pending MIGAS
approval.) Water depths over the
most prospective portion of the block
range from 1500 to 2200m.
This farmout represents an excellent
early entry opportunity into a frontier
basin with large resource potential in
a proven Indonesian play type. MIBBL
seeks to farmout up to 25% of equity
in the Bone Bay PSC. MIBBL (or its
affiliate) will remain Operator.
Work Commitment and Project Timing

The firm work program commitment

for the first three year exploration
period of the Bone Bay PSC includes
3,000 km of 2D seismic, a yearly
$100,000 G&G expenditure and one
exploration well. MIBBL completed
the 2D seismic acquisition in January
2010 and anticipates processing will
be completed in Q2 of 2010. Drilling is
tentatively planned for 2011.
Prospectivity

Using a sparse regional spec 2D

seismic grid (25km average line
spacing), MIBBL has identified an
Upper Miocene Tacipi carbonate
play analogous to discoveries and
a producing field in the adjacent
onshore Sengkang Basin in South
Sulawesi, and discoveries in the

Sulawesi

Senoro - Matindok
Trend

BBA-1X

Sengkang
Basin

Bone Bay PSC

Senoro-Matindok area in Northeast

Sulawesi. Petroleum system modeling
suggests potential for oil charge in
the offshore area of Bone Bay, in
contrast to the gas-prone Sengkang
basin. Upper Miocene carbonate
build-ups interpreted on the sparse
2D lines indicate a reservoir fairway
exists across the PSC, and if an active
hydrocarbon system is proven the
potential exists for a large number
of accumulations. Although, the
interpretation of recently acquired
prospect-scale 2D grid is required
to generate a ranked prospect
inventory and to properly quantify
the scale of the opportunity, MIBBL
currently estimates summed, mean,
unrisked resource potential in the
play exceeding a billion barrels oil
equivalent.

This frontier basin hosts a single

well (BBA-1X, drilled in 1971),
which did not evaluate the Miocene
Carbonate play and in light of
more recent seismic data, MIBBL
believes represents a poor test of the
hydrocarbon potential in this basin.
Source System

MIBBL has identified Bone Bay as a

potential Eocene rift basin, a proven
petroleum system across Indonesia,
west of Bone Bay. Although there
is uncertainty in petroleum system
parameters for this rank frontier
basin, stochastic basin modeling
using available constraints indicates
the potential for oil charge in the
offshore Tacipi carbonate play.

Marathon Indonesia (Bone Bay) Limited

Top Miocene Depth Structure

(TVDSS, 500 ft C.I.)

2D Tacipi Closures (circular assumption)

Tacipi Play Fairway
Bone Bay PSC

Su
la
w

es

-07
BN07

5km

West

BN07-07

Pseudodepth section
(1/3 water removed)

Reservoir & Seal

Upper Miocene Tacipi limestone,

equivalent to the productive interval
in the adjacent Sengkang Basin, is the
anticipated reservoir. Outcrop and well
data in the Sengkang Basin suggest
up to 800m of Tacipi carbonatebearing section was deposited
across a large area. The 350-500bcf
Kampung Baru field is believed to be
filled to spill with a reported column
height of 85m. Seismic evidence in
the offshore area suggests potential
for similar carbonate interval
thickness and equivalent or greater
closure sizes. Late Miocene and
Pliocene marine shales provide the
regional topseal in the Sengkang
Basin and should be well developed
in the offshore play area.
Bone Bay PSC

East

~5:1 VE

Top Miocene

urce?
Post-rift So ase Miocene
B

1 km

ift
n-r
Sy

e
urc
So

5 km

This release contains forward-looking statements concerning anticipated future development and drilling activity. These forward-looking statements
may be affected by a number of factors or are based on a number of assumptions including, among others, pricing, supply and demand for petroleum
products, amount of capital available for exploration and development, regulatory constraints, timing of commencing production from new wells,
unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto, and other geological,
operating and economic considerations. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995,
Marathon Oil Corporation has included in it Annual Report on Form 10-K for the year ended December 31, 2008, and in subsequent Forms 10-Q and 8-K,
cautionary language identifying other 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.

Contact Information:
John Bates
MIPIL General Manager
Phone: +62-21-2757-9000
E-Mail: johnabates@marathonoil.com
www.marathon.com

Gary Guthrie
Exploration Manager
Phone: +62-21-2757-9000
E-Mail: geguthrie@marathonoil.com

John M. Capps
Commercial Manager
Phone: +1-713-296-3724
E-Mail: jmcapps@marathonoil.com