Mobil said the Santa Fe Galaxy II jackup drilling rig hasspudded its first production well at the Sable Offshore EnergyProject (SOEP). The Galaxy II joins the Rowan Gorilla II rig, whichhas been drilling in the area since June. Construction on the $1.3billion SOEP (Mobil share 50.8%), which began in January, is nowwell over one-third completed and on schedule to deliver gas tomarket by November 1999.

Sable gas will be delivered to the Maritime provinces in Canadaand to markets in the Northeastern United States via the Maritimesand Northeast Pipeline (M&ampNP), a 600-mile line currently underconstruction. Approval to proceed with Phase II of M&ampNP wasrecently granted by the Maine Board of Environmental Protection.

Mobil has already sold almost 40% of its share of Sable gas andis seeking to increase gas production and sales from its acreageoffshore Nova Scotia. As part of this effort, Mobil Canada isexpanding its exploration position in the area and was recentlyawarded a 254,400-acre oil and gas exploration license (Mobil share50%) on the promising Banquereau Bank area off Cape Breton, NS.

The license builds upon the 3.4 million-acre explorationposition Mobil already holds offshore Nova Scotia. The Banquereauproperty is immediately adjacent to property already held by Mobilin the Laurentian Basin, an area between the Canadian provinces ofNova Scotia and Newfoundland.

Mobil has the largest energy portfolio in the Eastern Canadaoffshore oil and gas industry and leads in significant discoveries,reserves, production and active developments.

Joe Fisher, Houston

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