Marathon to solicit offers for Pennaco Energy Inc., related assets

Marathon Oil Corp. plans to solicit offers for its subsidiary Pennaco Energy Inc., which operates coalbed natural gas assets in the Powder River basin of Wyoming and Montana.

June 14, 2004

By OGJ editors

HOUSTON, June 13 -- Marathon Oil Corp. plans to solicit offers for its subsidiary Pennaco Energy Inc., which operates coalbed natural gas assets in the Powder River basin of Wyoming and Montana.

The sale of Pennaco would not include any of Marathon's conventional oil and natural gas exploration and production operations in Wyoming or Montana. Marathon plans to conclude the bidding in the third quarter and close in the fourth quarter if an acceptable offer is received.

Marathon said strong natural gas prices and recent sales transactions in the Rocky Mountains influenced its decision to market Pennaco and its assets at this time.