UNITED KINGDOM

Marathon has been producing oil and natural gas in the United Kingdom for more than 20 years. The Company's current holdings in the U.K. include the Brae, Braemar and Foinaven fields. The company's European operations are based in Aberdeen, Scotland.

Brae Complex

Marathon is operator and owns a 42 percent working interest in the South, Central, North and West Brae fields; a 38 percent working interest in the East Brae Field; and a 27.8 percent working interest in the Braemar Field. The Brae Alpha platform and facilities act as host for the underlying South Brae Field, as well as the adjacent Central Brae and West Brae fields. The North Brae Field and the East Brae Field are gas-condensate fields.

The export of Brae Field liquids is via the Marathon-operated Brae-Forties pipeline, in which the Company has a 42 percent interest, and via the BP-operated Forties pipeline systems to Cruden Bay in Scotland. Stabilized crude liftings are made at the Firth of Forth loading terminal near Edinburgh, Scotland.

On East and North Brae, low pressure operations projects are helping to maximize gas recovery and maintain high gas deliverability rates into the U.K. market. The strategic location of the Brae Alpha, Brae Bravo and East Brae platforms and connecting pipeline infrastructure continues to support significant third-party processing and transportation business. There are 28 agreements in place with third-party fields to use the Brae system. In 2007, new third-party business has included Enoch, Brenda and Nicol.

SAGE

The Brae group owns a 50 percent interest in the outside-operated SAGE pipeline. The SAGE pipeline provides transportation for Brae and Beryl area gas and has a total wet gas capacity of approximately 1.1 billion cubic feet per day (bcfd). The SAGE terminal at St. Fergus provides processing for gas from the SAGE pipeline and processing for 1 bcfd of third-party gas.

Foinaven

Marathon acquired an interest in the Foinaven Field in late 2000. Marathon has a non-operated interest in the Foinaven area, west of the Shetland Islands in water depths between 1,300 and 1,900 feet. The Company's working interests comprise a 28 percent stake in the main Foinaven Field, 47 percent of East Foinaven and 20 percent of the T35 and T25 accumulations.

In 2007, Marathon participated in an exploration well close to the Foinaven area. This well discovered oil in Block 204/23, following drilling on the South-West Foinaven prospect. Located 7 miles southwest of the Foinaven FPSO vessel, the well reached a total depth of 8,295 feet below sea level. This discovery is being evaluated as a subsea development, tied back to the Foinaven FPSO. Sales of Foinaven associated gas via the West of Shetland pipeline system commenced in April 2002. All sales are to the non-operated Magnus platform for use as an injection gas.

Coal Seam Gas

Marathon has a 45 percent interest in five exploratory U.K. onshore coal seam gas (CSG) licenses. Drilling has been completed in three exploration wells in two of the licenses. One production test was conducted in 2007. There is a program for testing and exploration in two of the five licenses through 2008. The Company and its joint venture partner were awarded 11 new blocks for CSG exploration and potential future development during the 13th Onshore Licensing Round in 2008. Marathon is the operator of these new blocks with a 55 percent working interest. After this licensing round, Marathon's interests cover 520,000 acres.

Marathon Oil UK Ltd.
Marathon House
Rubislaw Hill, Anderson Drive
Aberdeen, AB15 6FZ, Scotland
Phone: +44 1224-80-3000
Fax: +44 1224-80-3190