Canada

Canada's oil sands are set to play a major role in meeting the world's growing energy demand. This unconventional resource is the second largest oil reserve in the world, with recoverable reserves currently estimated at 173 billion barrels. It is anticipated that approximately 80 percent of this resource is too deep to mine and will be exploited using in-situ extraction techniques. The remaining 20 percent of the resource is shallow enough to utilize mining techniques and is discussed in Oil Sands Mining.

Marathon holds ownership interests in both operated and outside-operated in-situ oil sands leases that have the potential to be developed using in-situ methods of extraction. These leases cover approximately 143,000 gross acres (55,000 net), near Fort McMurray, Alberta. These leases are estimated to have 1.3 billion barrels of net mean recoverable resource (2.4 billion barrels at a P90 resource level):

• The Company operates a 100 percent working interest in the Birchwood project and a 60 percent working interest in the Namur project.
• Marathon also holds a 20 percent working interest in the Chevronoperated Ells River project.
• Marathon and Chevron have completed initial exploration of their respective operated projects. Marathon is currently conducting engineering assessments toward future project development.