Hess earmarks majority of $3.9B budget for E&P

Hess Corp.’s $3.9 billion capital and exploratory budget for 2010 is earmarked almost entirely for exploration and production: $2.4 billion for production, $600 million for developments and $850 million for exploration.

John B. Hess, chairman and CEO, stated, "We are fortunate to have a strong portfolio of attractive investment opportunities. We will invest in a disciplined manner to sustain long-term profitable growth for shareholders and expect to fund our 2010 program from internally generated cash flow."

Production expenditures of approximately $2.4 billion include:
• Bakken Shale development in North Dakota, where Hess plans to increase rig count to eight by year-end 2010 from three currently and expand production facilities, including the Tioga gas plant
• Drilling production wells at Okume Complex (Hess 85% working interest - operator) in the Rio Mumi Basin of Equatorial Guinea
• Drilling production wells at Shenzi (Hess 28%) in the deepwater Gulf of Mexico, Beryl (Hess 22%) in the United Kingdom and Valhall (Hess 28%) in Norway 

Field development expenditures of $600 million include:
• Valhall, where field redevelopment is underway
• Ujung Pangkah (Hess 75% - operator) in Indonesia, where development of the oil rim is ongoing
• Pony (Hess 100% - operator) in the deepwater Gulf of Mexico, where engineering and design work for field development is progressing 

Exploration expenditures are budgeted at $850 million, including:
• Five exploration wells on Permit WA-390-P (Hess 100% - operator) and eight wells on Permit WA-404-P (Hess 50%) in the Northwest Shelf of Australia
• One exploration well on BM-S-22 (Hess 40%) in the Santos Basin of Brazil
• Exploration activities in the deepwater Gulf of Mexico, Ghana and Indonesia

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