Press Release: Successful appraisal on Ujung Pangkah field

August 11, 2004 -- Amerada Hess, as the Pangkah Production Sharing Contract to BPMIGAS for Pangkah block offshore East Java, Indonesia, has completed successfully the two-well appraisal program on the Ujung Pangkah Field. Both wells were drilled by the Diamond Ocean Sovereign jack-up rig, which is now moving on to drill an appraisal of the Sidayu field to the north in the same PSC area. Sanction of Phase 1 of the Ujung Pangkah development project is expected shortly.

The Ujung Pangkah North and Ujung Pangkah West appraisal wells were drilled 3 km and 5 km respectively from the nearest existing well, using the jack-up drilling rig ?Ocean Sovereign?. Both wells encountered gas overlying oil in the Kujung limestone formation at a depth of approximately 4,800 feet below sea level. The gas-oil contact and oil-water contact in the wells are both at a depth consistent with that observed in the previous wells drilled on the eastern part of the structure, indicating the discovery of a significant extension to the previously proven area of the Ujung Pangkah field.

The northern well encountered an oil column with a thickness of 77 feet underlying a gas column spanning 78 feet. Production testing of the oil zone resulted in a stabilized flow rate of 2,300 barrels per day. A separate test of the gas zone achieved a flow rate of 14.4 million cubic feet per day.

The western well encountered a similar section of oil bearing limestone underlying a larger 117 feet gas column. Production testing of the oil zone in this well resulted in stabilized flow rates of 2,100 barrels per day and a separate test of the gas zone achieved a flow rate of 31.4 million cubic feet per day.

The large amount of data obtained from these two new appraisal wells will now be analysed to determine the likely increase in oil and gas reserves. The encouraging production tests from the oil and gas bearing layers of these wells will be analysed to assess the feasibility of further development of the Ujung Pangkah reservoir.

This will enable Amerada Hess to build on the core Pangkah development which is a key part of Amerada Hess?s growing business portfolio in Indonesia and South East Asia.

Co-venturers in the Pangkah PSC are: Amerada Hess (66 percent and Operator), ConocoPhillips (22 percent), Dana Petroleum (12 percent). (end of release)