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Marathon Alaska Announces Kenai National Wildlife Refuge Natural Gas Production


Marathon Oil Company announces it has achieved first natural gas production from the Wolf Lake Field located within the Kenai National Wildlife Refuge approximately 12 miles northeast of Soldotna, Alaska. Current production is three million cubic feet of gas per day and began November 17, 2001. The gas is delivered by pipeline to Enstar for distribution throughout the Cook Inlet region of South Central Alaska, including the city of Anchorage.

"Wolf Lake is the first Cook Inlet gas field discovery to be brought to market since 1979," said John Barnes, Manager of Marathon's Alaska Business Unit. "The Wolf Lake discovery is a direct result of Marathon's commitment to a multi-year drilling effort in the Cook Inlet. For some time, Marathon has seen the Cook Inlet as an area with a proven resource base, waiting on the right market conditions to support development. We will continue to pursue solutions which will allow Marathon to competitively meet the needs of the local markets."

Marathon has a 100 percent interest in the field. Cook Inlet Region Incorporated (CIRI) owns the subsurface mineral rights and will receive royalties from Marathon for Wolf Lake Field natural gas production. Ultimate development at the Wolf Lake Field may require up to six gas wells at three sites.

Marathon discovered the Wolf Lake Field in November 1998. In March 1999, Marathon filed a right-of-way permit application with the U.S. Fish and Wildlife Service (USFWS) for the construction of a five-mile pipeline and facilities to develop the Wolf Lake Field, which was approved in July 2000 following preparation of an Environmental Impact Statement by the USFWS. Marathon worked closely with USFWS in designing the project to minimize impacts to the environment. Pipeline and facility construction began in February 2001 and commissioning of the facilities was completed prior to first production.

Marathon's Alaskan operations are based in Anchorage. Marathon is one of the largest gas producers in the Cook Inlet with more than 40 years of exploration and production activities. Marathon currently supplies over 60 percent of the natural gas consumed by South Central Alaska utility markets. Marathon's Alaskan properties include the Beaver Creek Field, also located in the Kenai National Wildlife Refuge. Since 1972, Marathon has produced 5.5 million barrels of crude oil and 150 billion cubic feet of gas from the Beaver Creek Field.

Marathon Oil Company, part of the USX-Marathon Group (NYSE: MRO) and a unit of USX Corporation, is a large fully integrated oil firm engaged in the worldwide exploration and production of crude oil and natural gas. Through Marathon Ashland Petroleum LLC, the Company also refines, markets and transports petroleum products in the United States. Visit the company's Web site at or .


SOURCE: Marathon Oil Company

Contact: John Barnes, +1-907-564-6400, or Susan Landreneau,
+1-713-296-3915, both of Marathon Oil Company


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