Marathon Oil Sets 2013 Capital, Investment and Exploration Budget

Marathon Oil Sets 2013 Capital, Investment and Exploration Budget

HOUSTON, Dec. 4, 2012 (GLOBE NEWSWIRE) -- Marathon Oil Corporation (NYSE: MRO)
announced today a $5.2 billion capital, investment and exploration budget for
2013, approximately 65 percent of which is targeted to the Company's
liquids-rich growth assets.

"Our 2013 capital budget of nearly $5.2 billion highlights Marathon Oil's
continued focus on value growth, which we expect will generate a 6 to 8
percent year-over-year increase in total Company production, driven by our
activity in liquids-rich U.S. resource plays," said Clarence P. Cazalot Jr.,
Marathon Oil's chairman, president and CEO. "About one-third of our overall
budget, or $1.9 billion, is allocated to the Eagle Ford shale play in south
Texas where we demonstrated our ability to deliver very strong results in 2012
and recently raised our 2013 production target there to 85,000 net barrels of
oil equivalent per day (boed). The economics and well performance we're
achieving in the Eagle Ford, along with our ability to drive efficiencies,
make this play a focal point of our growth strategy. The Bakken shale in North
Dakota and the Oklahoma resource basin are our other two critical plays in the
U.S.

"We plan to spend approximately $1.1 billion on base assets across North
America, Africa and Europe, including Oil Sands Mining. These large, stable
assets are an integral part of our global portfolio and enable us to generate
substantial cash flow for investing in our future growth. At the same time, we
are constantly working to reduce costs and optimize the portfolio to maximize
returns from our base assets.

"Additionally, our 2013 plans to participate in drilling 10 to 13 impact
exploration wells in some of the most prospective basins in the world are
expected to provide further upside potential," Cazalot said.

"With this budget, Marathon Oil remains committed to financial discipline, a
strong balance sheet and creating and delivering value for our shareholders."

Exploration & Production (E&P)

Marathon Oil's strategy is based on three key elements: a solid portfolio of
base assets that generates significant cash flow, a defined set of growth
assets that provides low risk profitable growth and a balanced exploration
program targeting significant value creation. The Company expects 2013 E&P net
production available for sale to average 395,000 to 420,000 boed (excluding
Libya).

Base Assets: The Company plans to spend approximately $870 million on its base
E&P assets to provide stable production, income and cash flow. These assets
include production operations in Norway, the Gulf of Mexico, U.S. conventional
oil and gas plays, Equatorial Guinea, the United Kingdom and Libya. With a
continued emphasis on high operational reliability, Marathon Oil will continue
to stress a disciplined investment plan and maintain a competitive cost
structure for its base assets.

Growth Assets: Approximately $3.4 billion of the capital spending budget is
allocated to E&P growth projects. Of that, $1.9 billion is allocated toward
the Eagle Ford with plans for drilling 215 - 250 net wells (275 - 320 gross,
all company operated) in 2013. Included in Eagle Ford spending is $190 million
for central batteries and pipeline construction.

Additionally, the Company plans to spend nearly $800 million in the Bakken
shale in North Dakota and $150 million in the Oklahoma resource basin. With
that, Marathon Oil plans to drill 65 - 70 net wells (190 - 220 gross, 60 - 70
Company operated) in the Bakken and 15 - 19 net wells (42 - 50 gross, 12 - 14
Company operated) in the Oklahoma resource basin.

Approximately $540 million is allocated toward other development activities,
such as Angola Blocks 31 and 32, the Kurdistan Region of Iraq and Canadian
in-situ development.

Exploration: Marathon Oil plans to spend approximately $450 million
selectively investing in a balanced exploration program. Activity will include
conducting seismic surveys and drilling 3 - 5 net wells (10 - 13 gross, 3 - 4
Company operated) across the deepwater Gulf of Mexico, Ethiopia, Kenya, Gabon,
the Kurdistan Region of Iraq and Norway.

Oil Sands Mining

Marathon Oil has budgeted $262 million for its Oil Sands Mining segment. The
2013 budget includes funds for debottlenecking projects, a carbon capture and
sequestration project and other capital expenditures. Marathon Oil holds a 20
percent outside-operated interest in the Athabasca Oil Sands Project.

Corporate and Other

The corporate budget is expected to total approximately $180 million, of which
$119 million represents capitalized interest on assets under construction.

Marathon Oil Corporation is an independent international exploration and
production company. Based in Houston, Texas, Marathon Oil had net proved
reserves at the end of 2011 of 1.8 billion barrels of oil equivalent in North
America, Europe and Africa.

###

Note to investors: Marathon's capital, investment and exploration budget
includes items that will not be reported as capital expenditures under U.S.
generally accepted accounting principles. See the table at the end of this
release for a reconciliation of forecasted capital expenditures to the
capital, investment and exploration budget. In the above discussion, segment
amounts do not include capitalized interest. Capitalized interest for all
capital projects is budgeted in total as part of the Company's corporate
capital spending budget.

This release contains forward-looking statements with respect to the capital,
investment and exploration budget, the timing and levels of the Company's
worldwide and Eagle Ford shale play liquid hydrocarbon and natural gas
production, expected drilling activity in 2013, and investments in development
projects. The capital, investment and exploration budget is based on current
expectations, estimates and projections and is not a guarantee of future
performance. Some factors that could cause actual results to differ materially
include prices of and demand for liquid hydrocarbons and natural gas, actions
of competitors, disruptions or interruptions of production operations due to
the shortage of skilled labor and unforeseen hazards such as weather
conditions, acts of war or terrorist acts and the governmental or military
response, and other operating and economic considerations. Some factors that
could potentially affect the timing and levels of the Company's worldwide and
Eagle Ford shale play liquid hydrocarbon and natural gas production, expected
drilling activity in 2013, and investments in development projects include
pricing, supply and demand for liquid hydrocarbons, natural gas and synthetic
crude oil, the amount of capital available for exploration and development,
occurrence of acquisitions or dispositions of oil and natural gas properties,
regulatory constraints, inability or delay in obtaining government and
third-party approvals and permits, 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.
The foregoing factors (among others) could cause actual results to differ
materially from those set forth in the forward-looking statements. 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, 2011, and
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.

2013 Capital, Investment and Exploration
(non-capital) Spending                                                 
(dollars in millions)
                                                  2013    Percent  
                                                   Budget   Of Total
Worldwide Exploration and Production (E&P)                        
 Base Assets                                     $872    17%      
 Growth Assets                                   3,418   66%      
 Exploration*                                    450     9%       
 Total Worldwide E&P                             4,740   92%      
                                                                 
U.S. E&P                                           3,438   67%      
International E&P                                  1,302   25%      
 Total Worldwide E&P                           4,740   92%      
                                                                 

Oil Sands Mining                                   262     5%       
Integrated Gas                                     1       0%       
                                                                 
 Total Upstream                                 5,003   97%      
                                                                 
                                                                 
Other                                                             
Corporate                                          61      1%       
Capitalized Interest                               119     2%       
 Total Other                                   180     3%       
Total Capital, Investment and Exploration Spending $5,183  100%     
                                                                  

* Includes spending on exploration in the deepwater Gulf of Mexico, Ethiopia,
Kenya, Gabon, the Kurdistan Region of Iraq, Norway and Poland. It does not
include all exploration and exploitation spending, which is expected to be
$958 million in 2013.

Capital, investment and exploration spending includes capital expenditures,
cash investments in equity method investees and other investments, exploration
costs that are expensed as incurred rather than capitalized, such as
geological and geophysical costs and certain staff costs, and other
miscellaneous investment expenditures. The components of capital, investment
and exploration spending are as follows:

                                                 2013
                                                  Budget
Capital Expenditures                              $4,920
Investments in Equity Method Investees and Other  1
Other Exploration Costs                           262
 Capital, Investment and Exploration Spending 5,183

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