Maurel & Prom: 3rd Quarter 2008 Sales and Earnings

PARIS, November 4 /PRNewswire-FirstCall/ —

   – 3rd Quarter 2008 Highlights    Sales for the 3rd quarter and first 9 months of 2008    – Sales for Q3 2008 rose 50% to EUR 115.7m, up from EUR 77.3m     in Q3 2007.    – Total sales for the first nine months were up 36% to     EUR291.6m as against EUR 214.3m over the first 9 months of 2007.    – Maurel & Prom’s production share increased 32% to 19,983     bbl/d and by 30% to 17,075 bbl/d in production share net of in-kind     taxes (entitlement).    Exploration    – Exploration successes    – In Gabon:      – Omko (output of 5,510 bbl/d)     – Ombg (output of 920 bbl/d)    – In Colombia: Ortega Sur (output 1,350 bbl/d)    – Exploration themes confirmed      – In Tanzania: M’Bezi-1     – In Colombia: Guarrojo SW-1    – Exploration territory expanded      – In Tanzania: signature of an under which Maurel & Prom       acquired a 50% interest in the Mandawa exploration permit.     – In Colombia: signature of the Muisca exploration permit (100%).     Rescheduling of hedging on oil prices   Q3 2008 sales were up 50% from the same period in 2008.  

Sales were mainly generated from oil production in Colombia (77%) and the drilling activity of its wholly owned subsidiary Caroil (21%).

   EUR millions     3rd quarter 2008       9-month year-to-date 2008                   2008   2007  Change     2008      2007     Change             Congo    0.2    0.2   -11%       0.4       0.6      -26%          Tilapia    0.2    0.2   -11%       0.4       0.4       10%            Gabon    3.7    1.0   269%       5.8       1.0      482%            Banio    3.7    1.0   269%       5.8       1.0      482%             Onal    0.0    0.0      –       0.0       0.0         –    Latin America   89.6   59.5    51%     224.8     148.5       51%         Colombia   89.6   59.5    51%     224.8     148.5       51%   Oil production   93.5   60.7    54%     231.1     150.1       54%          Drilling   22.1   16.6    33%      60.4      60.8       -1%             Other    0.1    0.0      –       0.1       3.4      -97%             TOTAL  115.7   77.3    50%     291.6     214.3       36%     Sales for Q3 2008 rose 50% to EUR 115.7m, up from EUR 77.3m in Q3 2007.  

When expressed in US dollars, the Group’s total sales for Q3 2008 were $174.0m compared with $105.8m in Q3 2007, a 64% increase.

Sales for the first 9 months of the year totalled EUR291.6m, up 36% from the same period in 2007.

   This rapid increase in sales was due to:    – The increase in oil prices over the period (Brent +69% and     WTI +73%);   – Development of the Ocelote field in Colombia;   – The successful testing of the Banio-2 well.    

Sales trend were negatively impacted by the US$/EUR exchange rate, which declined 12% over the first 9 months of the year.

When expressed in US dollars, the Group’s sales for the first 9 months of 2008 were $443.7m, up 54% from $288.2m for the same period in 2007.

   Breakdown of sales by geographic region:    in %        Total sales share   Colombia                  81%   Congo                     16%   Gabon                      2%   Tanzania                   1%   Total                    100%     Breakdown of sales by activity:    in %            Total sales share   Oil business                  79%   Drilling                      21%   activity   Total                        100%    

Caroil, an oil services company, contributed Q3 2008 sales of EUR 22.1m versus EUR 16.6m for the prior year’s period, a 33% increase. This sales contribution was $33.4m when expressed in US dollars.

Over the first 9 months of 2008, Caroil contributed sales of EUR 60.4m versus EUR 60.8m for the same period in the previous year. When expressed in US dollars, the sales contribution totalled $91.9m for the first 9 months of 2008 and $81.7m for the same period in 2007.

Caroil’s individual sales for the first 9 months of 2008 rose 35% to EUR93.8m over the same period in 2007 when sales totalled EUR 69.3m. Expressed in US dollars, Caroil’s individual sales were EUR 142.8m, a 53% increase over the same period in 2007.

   Caroil generated 64% of its sales from customers other than Maurel & Prom.     2008  2007 Change  Business climate information    2008   2007 Change      Q3    Q3                                       9 mos. 9 mos.     0.66  0.73    -9%     US$/EUR exchange rate        0.66   0.74   -12%   116.8  75.0    56%        Brent (US$/bbl)          113.2   67.1    69%   118.1  75.1    57%         WTI (US$/bbl)           114.4   66.2    73%    

Maurel & Prom’s production share was 19,983 bbl/d in Q3 2008, representing 19,462 bbl/d in Colombia, 31 bbl/d in the Congo and 490 bbl/d in Gabon.

   COLOMBIA         2008      2007 Chg.   Colombia        Unit       2008     2007  Chg.          Q3        Q3                                  9 mos.   9 mos.                                            274-day                                            basis   1,790,523 1,365,710 31%  Maurel & Prom   barrels 4,637,606 3,867,740  20%      19,462    14,845     production share bbl/d      16,926    14,168   1,528,847 1,182,154 29%  Net production  barrels 3,932,009 3,284,827  20%      16,618    12,850      (entitlement)   bbl/d      14,350    12,032   1,512,317 1,214,752 24% Production sold  barrels 4,022,634 3,301,089  22%      16,438    13,204                      bbl/d      14,681    12,092        14.6%     13.4%  9%  Taxes in kind*     %        15.2%     15.1%   1%        89.1      67.0 33% Average selling                               price        US$/bbl      85.1      60.5  41%                            * royalties     

Maurel & Prom’s share of daily production in Colombia was 19,462 bbl/d as against 14,845 bbl/d for Q3 2007, a 31% increase. Columbian production net of all in-kind taxes rose 29% to 16,618 bbl/d. The increase was generated by the gradual start of production on the Ocelote field. The average selling price was US$89.1/bbl, after the effects of hedging on selling prices initiated by Maurel & Prom.

VENEZUELA

For information, operated production is currently 7,677 bbl/d. This represents a net share for Maurel & Prom of 1,627 bbl/d after deducting 30% for royalties in kind. Oil represents 67% of the total production and gas 33%.

   CONGO     2008  2007 Chg.         Congo         Unit            2008   2007 Chg.      Q3    Q3                                          9 mos. 9 mos.                                          274-day basis   2,867 7,014 -59%     Maurel & Prom     barrels       10,736 22,689 -53%      31    76        production share    bbl/d             39     83   2,287 3,589 -36%    Net production     barrels        5,893 13,244 -56%      25    39          (entitlement)     bbl/d             22     49   2,287 3,589 -36%    Production sold    barrels        5,893 12,510 -53%      25    39                            bbl/d             22     46    20.2% 48.8% -59%    Taxes in kind*     %              45.1%  41.6%   8%   117.6  73.9  59% Average selling price US$/b          112.8   68.7  64%                   * royalties + oil taxes     

The average selling price in the Congo was US$117.6m for Q3 2008 and US$112.8m for the first 9 months of 2008.

GABON

Gabon’s production comes from the Banio field where long-term testing was resumed once a pump was installed.

     2008   2007 Chg.         Gabon          Unit        2008   2007 Chg.       Q3     Q3                                       9 mos. 9 mos.                                             274-day basis   45,061 24,344  85%     Maurel & Prom      barrels   85,303 24,344 250%      490    265         production share    bbl/d        311     89   39,743 21,471  85%     Net production     barrels   75,237 21,471 250%      432    233          (entitlement)      bbl/d        275     79   40,096 21,471  87%    Production sold     barrels   71,556 21,471 233%      436    233                             bbl/d        261     79     11.8%  11.8%   0%         Taxes*         %          11.8%  11.8%   0%    138.5   65.6 111% Average selling price  US$/b      123.7   65.6  89%                      *royalties + oil taxes      The average selling price in Gabon was US$ 138.5/bbl for Q3 2008.   Exploration   Successful exploration   Maurel & Prom had several exploration successes in Q3 2008:    – In Colombia with the Ortega Sur well, drilled under the Ortega     incremental production contract. Estimated total production from the     well was 7.5 million cubic feet per day, corresponding to 1,350 bbl/d.     Maurel & Prom’s net production (entitlement) after deducting all     in-kind oil taxes was 4.76 million cubic feet per day, or 857 bbl/d     (see press release No. 27-08 of 9 July 2008).    – In Gabon with the OMKO-1 and OMBG-1 wells, which respectively, produced     5,510 bbl/d and 920 bbl/d. The OMKO-1 well discovered a new oil theme,     the Kissenda, which will be assessed over the next six months (see     press release No. 30-08 and 35-08 of 24 July and 10 October 2008).     New exploration themes confirmed  

In Tanzania, the M’Bezi-1 exploration well revealed gas-impregnated formations in the Upper Cretaceous, confirming the interest in the exploration themes. Without adapted resources, this gas has not been produced in commercial quantities, and the wells were capped. The Minangu-1 exploration well, the main objective of this exploration area, is now being drilled.

In Colombia, the Guarrojo SW-1 exploration well, located 7 kilometres to the southwest of the Ocelote field, discovered an oil deposit that was too thin for commercial production.

Exploration territory expanded

Maurel & Prom signed a new exploration and production contract (Muisca) with Colombia’s National Hydrocarbons Agency (ANH), located 100 kilometres northeast of Bogota (see press release No. 33-08 of 11 September 2008).

Maurel & Prom signed an agreement in Tanzania to acquire a 50% interest in the Mandawa exploration permit (see press release No. 33-08 of 11 September 2008).

Oil price hedging rescheduled

Maurel & Prom is now negotiating a line of credit based on the Group’s reserves. As part of the preparations for this financing, the banking consortium and the Group’s management decided to reschedule the current hedges.

   The new terms are as follows:                                     Q3 2008    2009    2010     2011    2012    Starting on 1 April 2008   bbl/d   2,250   2,250   2,250    2,250   2,250   Average price (WTI)        $/bbl   95.82   95.82   95.82    95.82   95.82    Starting on 1 October 2008 bbl/d   4,000   3,586   3,336    3,086   Average price (WTI)        $/bbl   87.90   87.90   87.90    87.90    

This press release may contain forward-looking statements with respect to the financial position, results of operations, business, strategy and plans of Maurel & Prom. By their nature, forward-looking statements involve risks and uncertainties because they are based on events and circumstances which may or may not occur in the future. These forward-looking statements are based on assumptions which we believe are reasonable, but that could ultimately prove inaccurate and are subject to a number of risk factors, including but not limited to, crude oil price fluctuations, exchange rate fluctuations, the uncertainties inherent in estimating oil reserves, actual future production rates and associated costs, operational problems, political stability, changes in laws and governmental regulations, wars and acts of terrorism or sabotage.

        Maurel & Prom is listed on Euronext Paris – Compartment A – CAC                               mid 100 Index             Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA                Next press release: 5 February 2009 – 2008 sales     Investor Relations    Laurence Borbalan   Tel.: +33-1-47-03-68-58   Mob.:+33-6-79-44-66-55   Laurence.Borbalan@fd.com    Press Relations    Michelle Aubert   Tel.: +33-1-47-03-68-61   Mob.:+33-6-85-34-45-94   Michelle.Aubert@fd.com  

Maurel & Prom

CONTACT: Investor Relations: Laurence Borbalan, Tel.:+33-1-47-03-68-58, Mob.:+33-6-79-44-66-55, Laurence.Borbalan@fd.com; PressRelations, Michelle Aubert, Tel.: +33-1-47-03-68-61, Mob.:+33-6-85-34-45-94,Michelle.Aubert@fd.com .