MARATHON STARTS E. BRAE PRODUCTION

Jan. 3, 1994

Marathon Oil U.K. Ltd., operator for the Brae group, has begun production from East Brae gas/condensate field, site of Marathon's third major platform in the Brae trend of the U.K. North Sea. East Brae is the largest Brae field developed to date. The field, in Blocks 16/3a and 16/3b, contains recoverable reserves of more than 300 million bbl of liquid hydrocarbons and 1.4 tcf of gas. East Brae liquids production is expected to peak at a rate of 115,000 b/d in November.

Marathon Oil U.K. Ltd., operator for the Brae group, has begun production from East Brae gas/condensate field, site of Marathon's third major platform in the Brae trend of the U.K. North Sea.

East Brae is the largest Brae field developed to date. The field, in Blocks 16/3a and 16/3b, contains recoverable reserves of more than 300 million bbl of liquid hydrocarbons and 1.4 tcf of gas.

East Brae liquids production is expected to peak at a rate of 115,000 b/d in November.

Gas sales from the Brae complex, including East Brae, are expected to start in October at a rate of 270 MMcfd, eventually increasing to 350 MMcfd. Sales gas will move to St. Fergus, Scotland, through the SAGE (Scottish Area Gas Evacuation) system, 50% owned by the Brae group.

East Brae interests are Marathon 35.84%, Britoil plc 25.58%, Bow Valley Petroleum (U.K.) 13.28%, Kerr McGee Oil (U.K.) plc 7.46%, British Gas Exploration & Production Ltd. 6.494%, LL&E (U.K.) Inc. 5.886%, Sovereign Oil & Gas plc 3.82%, and British-Borneo Oil & Gas Ltd. 1.64%.