Marathon Oil Corporation MRO today announced it is moving forward with plans to repurchase $1 billion
of the Company's common stock pursuant to its outstanding share repurchase
authorization. Unrelated to the share repurchase, the Company also announced
an intent to sell its interest in Block 32 offshore Angola for approximately
$590 million and the acquisition of approximately 4,800 net acres in the core
of its south Texas Eagle Ford position for approximately $97 million,
including carried interest of approximately $23 million.
The $1 billion in share repurchases will be completed in two phases. The
initial phase of $500 million in common stock repurchases is substantially
complete. The second $500 million phase is anticipated to be completed after
closing the previously announced sale of its 10 percent working interest in
Block 31 offshore Angola. That transaction, with a total value of
approximately $1.5 billion, excluding any purchase price adjustments, is
anticipated to close in the fourth quarter of 2013, with an effective date of
Jan. 1, 2013.
Marathon Oil has reached an agreement in principle to sell its 10 percent
working interest in the Production Sharing Contract and Joint Operating
Agreement in Block 32 offshore Angola to Sonangol E.P. The transaction has a
total value of approximately $590 million, excluding any purchase price
adjustments. Pending execution of definitive agreements and government
approval, the transaction is expected to close in the fourth quarter of 2013,
with an effective date of Jan. 1, 2013.
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