Marathon and Naftogaz Ukrainy Sign Cooperation Agreement to Carry out a Study in Dnieper-Donets Basin

HOUSTON, June 5 /PRNewswire-FirstCall/ -- Marathon International Petroleum, Ltd., a wholly-owned subsidiary of Marathon Oil Corporation , and National Joint Stock Company Naftogaz Ukrainy (NAK) have signed a cooperation agreement to carry out technical studies that could lead to the joint exploration for, and production of, hydrocarbons in an area of interest in the Dnieper-Donets Basin located in North Central Ukraine.

According to the agreement, NAK and Marathon will embark on a joint study of an agreed area of joint interest, covering approximately 26,000 square kilometers. The study will be conducted over the next three years during which time decisions will be made concerning further activities the Companies may undertake. Marathon is opening an office in Kyiv to manage these activities.

Commenting on the announcement, Philip G. Behrman, senior vice president of Worldwide Exploration for Marathon said, "This cooperation agreement with Naftogaz Ukrainy is consistent with Marathon's efforts to seek out and access new resources that could lead to profitable growth opportunities. We are hopeful that this will lead to a joint effort to explore the resource potential of the Dnieper-Donets Basin and the formation of a long-term, mutually beneficial relationship between Marathon and Naftogaz Ukrainy."

The Dnieper-Donets Basin is believed to contain significant remaining undiscovered resources of crude oil and natural gas. However, the recovery of these undiscovered resources is subject to considerable subsurface challenges and is dependent on the application of unique technologies.

Marathon is an integrated international energy company engaged in exploration and production; integrated gas; and refining, marketing and transportation operations. Marathon, which is based in Houston, Texas, has principal operations in the United States, Angola, Canada, Equatorial Guinea, Gabon, Indonesia, Ireland, Libya, Norway and the United Kingdom. Marathon is the fourth largest United States-based oil company and the fifth largest refiner in the United States.

This release contains forward-looking statements concerning the possible joint exploration for, and production of, hydrocarbons in North Central Ukraine. Factors but not necessarily all factors that could adversely affect these activities, include results of the technical studies, continued favorable investment climate, inability or delay in obtaining necessary government approvals, and other geological, operating and economic considerations. The foregoing factors (among others) could cause actual results to differ materially from those set forth in the forward-looking statements. In accordance with "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, 2006, 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.