Marathon Enters Eagle Ford Shale Play Entry Builds on Company's Strategy Targeting Unconventional, Liquids-Rich Resource Plays

HOUSTON, TX -- (Marketwire) -- 11/29/10 -- Marathon Oil Corporation (NYSE: MRO) announced
today
that it has completed an agreement with Denali Oil & Gas for entry into the
Eagle Ford Shale formation in Wilson and Atascosa counties, Texas. Under
the
terms of the agreement, Marathon will pay Denali $10 million as well as
drill
and complete four wells to earn approximately 17,000 net acres. Marathon
also
has the option to purchase Denali's remaining 58,000 net acres in the Eagle
Ford
Shale in these two counties. If Marathon executes this option, the full
75,000
net acres, including the initial payment, carried well interest and lease
extensions, will cost approximately $2,800 per acre or a total of
approximately
$209 million. Marathon has until Oct. 31, 2011, to exercise this option.

In the event Marathon does not exercise its purchase option, Denali has the
option to sell the remaining 58,000 acres to Marathon. The total cost under
this
option, including the initial payment, carried well interest and lease
extensions, would be $92 million or approximately $1,225 per acre. Denali
has
until the later of Nov. 15, 2011, or 15 days after the completion of the
final
well, to exercise this option. This agreement covers all of Denali's
acreage in
Wilson and Atascosa counties but excludes Denali's 25,000 acres in Gonzales
and
Fayette counties.

'Since acquiring our first shale assets in the onshore U.S. market in 2006,
Marathon has developed substantial expertise that we can apply to emerging
plays
like the Eagle Ford and create more opportunities for mid- and long-term
profitable production growth,' said Dave Roberts, the Company's executive
vice
president, Upstream. 'This new entry reinforces a key element of our
Upstream
strategy of targeting unconventional, primarily liquids-rich resource plays
providing low-risk, scalable growth.'

Marathon is an integrated international energy company engaged in
exploration
and production; oil sands mining; integrated gas; and refining, marketing
and
transportation operations. Marathon, which is based in Houston, has
principal
operations in the United States, Angola, Canada, Equatorial Guinea,
Indonesia,
Iraqi Kurdistan Region, Libya, Norway, Poland and the United Kingdom.
Marathon
is the fourth largest United States-based integrated oil company and the
nation's fifth largest refiner. For more information, please visit our
website
at http://www.marathon.com.

This news release contains forward-looking statements concerning the
possibility
of a significant new resource base. 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, drilling rig
availability, 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. Closing of the agreement
with
Denali Oil & Gas is contingent upon satisfaction of customary closing
conditions. In accordance with the 'safe harbor' provisions of the Private
Securities Litigation Reform Act of 1995, Marathon Oil Corporation has
included
in its Annual Report on Form 10-K for the year ended December 31, 2009, 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.

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Source: Marathon Oil Corporation via Thomson Reuters ONE

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