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MARATHON PLANS NEW NORTH SEA DEVELOPMENT FROM EXISTING BRAE PLATFORM

 HOUSTON, Nov. 18 /PRNewswire/ -- Marathon Oil U.K., Ltd., on behalf of the Brae Group, has submitted a plan of development for the Beinn gas condensate field, the fifth project to date in the productive Brae trend of the North Sea.
 The Beinn field is located in U.K. Block 16/7a, 155 miles northeast of Aberdeen and partially underlies the North Brae field.
 Development will utilize facilities on the Brae "B" platform. It will require minimal modification and can be implemented at considerable cost advantage. Wet gas in place is estimated to exceed 300 billion cubic feet (bcf). Beinn provides considerable potential for additional gas sales from the Brae area.
 The Beinn field was discovered in 1987 with the drilling of the 16/7a-30z well which was subsequently re-entered in 1989 and tested 210 feet of the Middle Jurassic reservoir. The well flowed at 1,319 barrels of condensate per day (b/d) and 12.9 million cubic feet of gas per day (mmcfd) at a flowing tubing pressure of 2,080 pounds per square inch (psi). The results established the production potential of deeper formations in the Middle Jurassic as opposed to the Upper Jurassic reservoirs which have accounted for all Brae production prior to the Beinn discovery.
 Additional wells were drilled in 1992 and 1993 from the Brae "B" platform. The first, 16/7a-B20, was completed in 230 feet of Middle Jurassic reservoir. The well has been on extended production test since late December 1992 while reservoir performance is being evaluated. Through the end of October 1993, it has produced almost 1 million barrels of condensate and 7 bcf of gas. It is currently producing at a daily rate of 3,400 barrels and 24 mmcfd of gas at 4,060 psi of flowing tubing pressure.
 The second well, 16/7a-B21, was drilled in 1993 and confirmed approximately 220 feet of Middle Jurassic pay. The well was completed in an Upper Jurassic interval and is currently on production. It is anticipated that well 16/7a-B21 will be recompleted in the Middle Jurassic by mid-1994.
 The Beinn field development will require additional activity. Next year a third well will be drilled and a 3-D seismic survey will be run. A fourth well may also be spudded.
 Commenting on the development program, Marathon Oil U.K. President John V. Parziale said: "We are enthusiastic about the economics of this project. Thanks to the cost advantage provided by our existing infrastructure, Beinn reserves can be developed at about $1 per barrel of oil equivalent. With East Brae expected to be on stream in mid- December and several other emerging opportunities that could be tied into our existing infrastructure, we believe that there is a great deal of additional development potential for the Brae area."
 Marathon is the operator for the Brae Group which includes Marathon Oil U.K., Ltd. (a wholly owned subsidiary of Marathon Oil Company, a unit of USX Corporation), 38.0 percent; Britoil plc (a wholly owned subsidiary of BP Exploration), 20.0 percent; Bow Valley Petroleum (U.K.) Limited (a wholly owned subsidiary of Bow Valley Energy, Inc. (NYSE: BVI)), 14.0 percent; Kerr-McGee Oil (U.K.) PLC, 8.0 percent; British gas Exploration and Production Limited, 7.7 percent; LL&E (U.K.) Inc. (a wholly owned subsidiary of the Louisiana Land and Exploration Company (NYSE: LLX)), 6.3 percent; Sovereign Oil & Gas PLC, (a subsidiary of Neste Production Ltd), 4.0 percent; and British-Borneo Oil & Gas Limited, 2.0 percent.
 -0- 11/18/93
 /CONTACT: William P. Ryder, 713-296-3915, or Michael R. Dixon, 713-296-3912, both of Marathon Oil/
 (MRO BVI LLX)


CO: Marathon Oil U.K., Ltd.; Brae Group; Marathon Oil Company;
 USX Corporation ST: Texas IN: OIL SU:


KC-MJ -- PG003 -- 5946 11/18/93 10:40 EST
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Publication:PR Newswire
Date:Nov 18, 1993
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