Mobil Discovers Additional Hydrocarbons in Deepwater Offshore East Kalimantan, Indonesia.

FAIRFAX, Va.--(BUSINESS WIRE)--July 15, 1998--Mobil Corp. announced Thursday that Mobil Makassar Inc., a subsidiary in Indonesia, has discovered additional oil and gas in the Greater Merah Besar area, offshore East Kalimantan in Indonesia.

Two recent exploration wells, Hitam Besar-2 and Hijau Besar-3, confirmed the presence of significant oil and natural gas potential in the deepwater area of the Mahakam Delta which is covered by the Makassar Strait Production Sharing Contract (PSC).

The Hitam Besar-2 well, completed as an oil and gas discovery on May 6, 1998, was drilled in 1,973 feet of water to a depth of 9,565 feet and found 66 feet of net hydrocarbon pay. The Hijau Besar-3 well, which was completed as an oil and gas discovery in early July, 1998, was drilled in 2,250 feet of water to a total depth of 8,000 feet and found 34 feet of net gas pay.

Two deep sidetrack wells from the original hole found an additional 125 feet of net condensate rich gas pay and 16 feet of net oil pay in adjacent fault blocks. Analysis continues on a deeper zone.

These two wells follow the initial discovery well, Merah Besar-6, drilled in 1997. A second rig has been brought in which will continue to appraise the Greater Merah Besar structure. Development plans for this area should be finalized later this year with the potential for production by 2001.

Based on the latest drilling information, the estimated gross resource potential in the Greater Merah Besar area, which is partly on Unocal's East Kalimantan PSC, is up to 190 million barrels-of-oil equivalent. Gas from the project is expected to be processed at Pertamina's Bontang LNG facility.

"This drilling program has confirmed the existence of significant hydrocarbon resources in the deepwater area of the prolific Mahakam Delta, and advances in deepwater production technology make commercial development possible," said M.W. Scoggins, president, International Exploration and Production.

"We are very encouraged by our early exploration success offshore East Kalimantan and several additional prospects have been identified on the Makassar acreage, some potentially larger than Merah Besar. Our plans are to drill these prospects while appraising the Merah Besar field."

Working interest in the Makassar Strait PSC is 50 percent Mobil and 50 percent Unocal, the operator of the block. Mobil, additionally, has an agreement with Unocal for a 30 percent interest in the Rapak block which is located to the north of and adjacent to the Makassar Strait PSC.

Rapak represents additional prospective acreage in the same hydrocarbon bearing trend as the Makassar block and presents Mobil with further opportunities for growth.

Mobil affiliates, under contractor agreements with Pertamina, the Indonesian national oil company, have working interests in 11 blocks in Indonesia.

In 1998, Mobil celebrates 100 years doing business in Indonesia, 30 years as a Production Sharing Contractor, 20 years as a producer of Liquefied Natural Gas (from the giant Arun natural gas field in Aceh province, north Sumatra) and 10 years as a producer of Liquefied Petroleum Gas.

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