2011-04-13-2011-04-06-2011-04-06

To buy 30% WI in 180,000 net acres in CO & WY DJ Basin targeting Niobrara shale.

Japanese oil company Marubeni Corp., Tokyo, (Tokyo: 8002), via subsidiary Marubeni Denver Julesburg LLC, plans to acquire a 30% undivided working interest in a position in the Niobrara shale play within the DJ Basin of southeastern Wyoming and northern Colorado from Marathon Oil Corp., Houston, (NYSE: MRO) for $270 million.

The deal values the assets at $5,000 per acre.

The acquisition consists of a 30% interest in 180,000 net acres in the DJ Basin. Marathon began leasing acreage in the DJ Basin in 2010 and is acquiring 2-D and 3-D seismic data and expects to participate in eight to 12 gross exploration wells by the end of the year. Marathon will be operator of the jointly owned leasehold.

Marathon executive vice president, upstream, Dave Roberts says, "Marathon is pleased to partner with Marubeni as we prepare to explore and evaluate the full potential of this emerging, liquids-rich resource play. Our significant acreage position in the DJ Basin reinforces our strategy of targeting unconventional, oil-focused resource plays in the U.S. that provide low-risk, scalable growth opportunities. It also allows us to apply expertise developed over the past several years in other unconventional shale plays such as the Bakken formation in North Dakota."

Marubeni reports, "We believe that this project including future expansion and potential new businesses associated with the project will become a solid base for Marubeni providing cash flow and profit in the mid- to long-term because our acreage position in the Niobrara is believed to be prospective…"

The company adds it has been seeking an opportunity to participate in the U.S. shale business since 2009 and has selected this project due to Marubeni's belief that it will the support U.S.'s new energy policies aiming to increase domestic crude oil production.

Marathon and Marubeni are also partners in a liquefied natural gas project in Equatorial Guinea.

The deal is expected to close by April 28.