PRODUCTION

Alvheim

Marathon holds a 65 percent working interest in, and serves as operator of, the Alvheim area. Marathon's partners in Alvheim are Norske ConocoPhillips AS, with a 20 percent working interest, and Lundin Norway AS, with the remaining 15 percent working interest.

  • The Alvheim area is comprised of the Kneler, Boa and Kameleon fields and is estimated to contain risked resources of approximately 130 million barrels of oil equivalent (mmboe).
  • Kneler was drilled into the prolific Heimdal formation to a total depth of 7,425 feet below sea level, encountering a net oil column of 115 feet.
  • Boa was drilled to a total depth of 7,531 feet below sea level and encountered a 174-foot gross hydrocarbon column, with 82 gross feet of gas on top of 92 gross feet of oil in high-quality sands.
  • The Boa reservoir straddles the Norway-UK median line, so a cross-border unit was established between the Alvheim partners (Maersk Oil UK and OMV) for this particular reservoir.
  • There will be 10 producing wells and two water disposal wells in the Phase 1 drilling program.
  • A Phase 2 drilling program is planned in 2010/2011 for further production wells.
  • The development provides for the transportation of produced oil by shuttle tanker, and transportation of produced natural gas to the existing U.K. Scottish Area Gas Evacuation (SAGE) system.
  • First production began on June 8, 2008.

Vilje

Marathon holds a 46.9 percent working interest in the nearby Vilje Field, with partners Statoil (operator) holding a 28.9 percent working interest and Total E&P Norge AS with a 24.2 percent working interest.

  • Vilje has two production wells and is tied back to the Alvheim FPSO.
  • Production commenced in August 2008.
  • Drilled into the Heimdal formation in 2003, Vilje reached a total depth of 7,446 feet and encountered a gross oil column of approximately 223 feet and is estimated to contain risked resources of approximately 34 mmboe.

Volund

The Volund Field, is located approximately 10 km south of Alvheim. Marathon is the operator of Volund with a 65 percent working interest, while Lundin Norway AS has the remaining 35 percent working interest.

  • Initial production from Volund was achieved on September 9, 2009 from one production well, which flowed for approximately 3 days to test performance.
  • The field was put in continous production in mid-April 2010 when processing capacity on the Alvheim FPSO became available. Before that, Volund was utilized as a swing producer.
  • The field is being developed by three production wells and one water injection well and has estimated reserves of 30 million barrels of oil equivalent (net to Marathon). Currently the first production and water injection well are completed, with the second and third production wells currently being drilled and expected to be completed and available by mid-2010.
  • Volund is the second (along with the Vilje field) third-party field being developed as a subsea connection to Alvheim.
  • Volund crude oil is part of Alvheim Blend being transported to market by shuttle tankers. Associated gas will be transported via Alvheim-to-SAGE pipeline to St Fergus.

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