Killajoules

Genesis Energy Enters into Agreements to Acquire Interests in Gulf of Mexico Oil Pipelines, including Posiedon
Genesis Energy, L.P. (NYSE: GEL) announced today that it has entered into definitive agreements to acquire from Marathon Oil Company interests in several Gulf of Mexico crude oil pipeline systems, including its 28% interest in Poseidon Oil Pipeline Company, L.L.C., its 29% interest in Odyssey Pipeline L.L.C., and its 23% interest in the Eugene Island Pipeline System. Marathon Oil Company is a wholly-owned subsidiary of Marathon Oil Corporation (NYSE: MRO). The Poseidon and Odyssey interests are subject to the expiration or waiver of rights of first refusal, and Genesis is not obligated to consummate any transaction unless it is ultimately successful in acquiring the interest in Poseidon.

Petrofac Awarded North Sea Contract Renewal
Petrofac, the international oil & gas facilities service provider, announces that its Offshore Engineering & Operations (OE&O) business has been awarded a contract renewal by Marathon Oil ("Marathon"). Petrofac has been working with Marathon on its North Sea Brae assets since 2005. Following the delivery of a number of critical projects, the contract has been extended by a further four years.

Marathon Oil Corporation Becomes Independent Upstream Company
Marathon Oil Corporation (NYSE: MRO) announced today that it has completed the spin-off of Marathon Petroleum Corporation (NYSE: MPC), making Marathon Oil an independent upstream company.

The First Japanese participation in European shale gas projects
Mitsui & Co., Ltd. ("Mitsui") is pleased to announce that it has entered into a definitive agreement with subsidiaries of the U.S. oil and gas development company, Marathon Oil Corporation (NYSE: MRO) ("Marathon"), to acquire a 9% working interest in 10 of Marathon's Paleozoic shale gas exploration concessions in the Republic of Poland ("Poland"). Another partner is a subsidiary of Nexen Inc. ("Nexen"), which owns a 40% working interest of the concessions. The closing of the transaction is subject to the statutory approval by the relevant Polish governmental authorities and Nexen. Mitsui is the first Japanese company to enter into a European shale gas project.

Marathon Oil Corporation Announces $3.5 Billion Acquisition of Eagle Ford Shale Assets
Marathon Oil Corporation (NYSE: MRO) announced today it has reached a definitive agreement with Hilcorp Resources Holdings, LP to purchase its assets in the core of the Eagle Ford shale formation in Texas in a transaction valued at $3.5 billion subject to closing adjustments, customary terms and conditions, and Hart-Scott-Rodino approval. Hilcorp Resources Holdings is a partnership between affiliates of Hilcorp Energy Company and Kohlberg Kravis Roberts & Co. LP. Along with other transactions expected to close by the end of 2011, Marathon's Eagle Ford acreage position is expected to more than double to 285,000 net acres. The Hilcorp transaction is expected to close Nov. 1, 2011 with an effective date of May 1, 2011.

Hilcorp acreage acquisition highlights:

• Approximately 141,000 net acres (217,000 gross) primarily in Atascosa, Karnes, Gonzales and DeWitt counties in Texas (see attached map)
• Potential opportunity to acquire approximately 14,000 additional net acres through tag-along rights and other leasing
• Approximately 90 percent operated with 65 percent average working interest
• As of May 1 there were 36 wells producing approximately 7,000 net (17,000 gross) barrels of oil equivalent (boe) per day, of which 80 percent is liquids (three-fourths of which is crude oil and condensate)
  • 10 additional wells drilled and awaiting completion
  • Six rigs currently operating and two dedicated hydraulic fracturing crews
  • Year-end production expected to be approximately 12,000 net boe per day
• Total net risked resource potential of 400 - 500 million boe with upside potential from additional downspacing and other stacked pay potential
• Potential to book up to 100 million boe of proved reserves by the end of 2011
• Production expected to increase to approximately 80,000 net boe per day by 2016

"Marathon has captured a top-five acreage position in the core of the premier resource play in the U.S. since first entering the Eagle Ford in November 2010. This transaction enhances our already strong North America position focused on unconventional, liquids-rich resource plays that provide low-risk, scalable and profitable growth," said Clarence P. Cazalot Jr., Marathon president and CEO. "This and other projects under development serve as a catalyst for Marathon to increase our projected Upstream production growth to 5 - 7 percent on a compound average annual growth rate (CAGR) during the period 2010 - 2016.

"In addition to establishing our position in the highest value oil and condensate core area of the Eagle Ford shale, these assets will deliver immediate production and reserve additions, an active Company-operated drilling program, significant resource potential, as well as solid economic returns and profitability that are immediately accretive to earnings and operating cash flow, and expected to be self-funding by 2014.

"With our technical expertise and best-in-class drilling, along with our project execution skills, we are poised to maximize profitable reserve and production growth across our liquids-rich resource plays, particularly in the Eagle Ford. Importantly, our financial flexibility enables us to pursue this growth while maintaining a strong balance sheet," Cazalot said.

Marathon will use cash on hand and cash generated from operations to fund the transaction. With an anticipated fourth quarter closing, the Company's Upstream capital, investment and exploration spending for 2011 (excluding acquisitions) is not anticipated to increase materially as a result of this transaction.

Increased Production Growth Across North America
In addition to the six rigs currently under contract related to this acquisition and two in Marathon's other Eagle Ford acreage, Marathon has five drilling rigs on order and expects to be operating at least 20 drilling rigs in the Eagle Ford within 12 months of closing this transaction. As a result, the Company expects to grow production from its total Eagle Ford acreage position to a peak of approximately 100,000 net boe per day by 2016. A summary of the total Eagle Ford acreage listed by county is included below.

Eagle Ford Acreage Summary*
County Net Acres
Wilson 98,000
Atascosa 47,000
Karnes 46,000
Gonzales 34,000
Frio 22,000
DeWitt 11,000
Bee 10,000
Lavaca 9,000
Live Oak 6,000
McMullen 2,000
Total 285,000

Marathon Oil Corporation's Board of Directors Approves Spin-Off of Marathon Petroleum Corporation
Marathon Oil Corporation (NYSE: MRO) (Marathon Oil) announced today that its Board of Directors has approved the spin-off of its downstream business through the distribution of shares of Marathon Petroleum Corporation (MPC) to holders of Marathon Oil common stock.

Expansion of oil sands upgrader goes on-stream
Shell today announced the successful start of production from its Scotford Upgrader Expansion project in Canada. The 100,000 barrels-per-day expansion takes upgrading capacity at Scotford to 255,000 barrels-per-day of heavy oil from the Athabasca oil sands.

Marathon Oil, Nexen Agree to Jointly Explore Shale Acreage in Poland
Marathon Oil Corporation (NYSE: MRO) announced today that it has signed an agreement with a wholly owned subsidiary of Nexen Inc. under which Nexen will acquire a 40 percent working interest in 10 of Marathon's concessions in Poland's Paleozoic shale play.

Marathon Oil Announces Discovery in the Kurdistan Region of Iraq
Marathon Oil Corporation (NYSE: MRO) announced today that its subsidiary, Marathon Petroleum KDV B.V., has participated in the Atrush-1 discovery well, located approximately 55 miles northwest of Erbil in the Kurdistan Region of Iraq.

Marubeni Participation in the Niobrara Shale Oil Project
Marubeni Corporation (“Marubeni”) announced today that Marubeni Denver Julesburg LLC, a U.S. subsidiary of Marubeni, has entered into an agreement with Marathon Oil Corporation (“Marathon”) (NYSE: MRO), a U.S. major oil and natural gas company with which Marubeni has a long-standing relationship over the years as a reliable partner of the Liquefied Natural Gas (“LNG”) project in Equatorial Guinea, on April 4, 2011 to acquire a 30% working interest in the Denver Julesburg Basin Niobrara shale oil play for approximately US$ 270 million, covering 180,000 net acres of oil and gas leases pertaining to this deal located in Colorado and Wyoming.