Hess Corporation Announces Capital and Exploratory Budget for 2011

07.01.2011  |  Business Wire

Hess Corporation (NYSE: HES) announced today a 2011 capital and
exploratory budget of $5.6 billion, nearly all of which is targeted for
Exploration and Production: $3.1 billion for production, $1.6 billion
for developments and $900 million for exploration.

John B. Hess, Chairman and CEO, stated, 'We are pleased to have a global
portfolio of attractive investment opportunities. We expect to fund our
2011 program from internally generated cash flow.?

Greg Hill, President of Worldwide Exploration and Production, said,
'More than 35 percent of our capital and exploratory expenditures in
2011 are devoted to unconventional oil projects. We have a balanced
program that will underpin our long term target of growing reserves and
production by at least 3 percent per year.?

Production expenditures of approximately $3.1 billion include:

• 
  Bakken oil shale in North Dakota, where Hess plans to operate 15 rigs
  and expand production facilities
  
• 
  Drilling production and water injection wells at Valhall (Hess 64
  percent working interest) in Norway and Shenzi (Hess 28 percent) in
  the deepwater Gulf of Mexico
  
• 
  Well workovers and completions at Ceiba and Okume Complex (Hess 85
  percent - operator) in Equatorial Guinea
  

Field development expenditures of $1.6 billion include:

• 
  Expansion of the Tioga Gas Plant and construction of a crude oil rail
  loading and storage facility to support the development of the Bakken
  oil shale in North Dakota
  
• 
  Field redevelopment work at Valhall to increase production capacity
  and extend field life by 40 years is expected to be completed during
  2011
  
• 
  Pony (Hess 100 percent - operator) and Tubular Bells (Hess 40 percent
  - operator) in the deepwater Gulf of Mexico, where engineering and
  design work is progressing
  

Exploration expenditures are budgeted at $900 million, including:

• 
  Conventional deepwater drilling in Egypt, Ghana, Indonesia and Brunei
  
• 
  Unconventional onshore drilling in the Eagle Ford Basin in Texas and
  the Paris Basin in France
  

Hess Corporation, with headquarters in New York, is a global integrated
energy company engaged in the exploration, production, purchase,
transportation and sale of crude oil and natural gas, as well as the
production and sale of refined petroleum products. More information on
Hess Corporation is available at www.hess.com.

Cautionary Statements

This news release contains projections and other forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934.These
projections and statements reflect the company′s current views with
respect to future events and financial performance.No assurances
can be given, however, that these events will occur or that these
projections will be achieved, and actual results could differ materially
from those projected as a result of certain risk factors.A
discussion of these risk factors is included in the company′s periodic
reports filed with the Securities and Exchange Commission.