The Associated Press November 29, 2010, 11:10AM ET

Marathon Oil to spend $10M on oil drilling

Marathon Oil Corp. said Monday that it will spend $10 million to expand oil drilling operations in Texas.

The Houston oil and gas company said it will acquire about 17,000 acres in the Eagle Ford Shale formation in Wilson and Atascosa counties in Texas from Denali Oil & Gas. The deal includes an agreement to drill and complete four wells.

Marathon can buy another 58,000 acres, bringing the total price tag to $209 million, the company said. Marathon has until Oct. 31, 2011, to decide whether to exercise that option.

Marathon shares fell 18 cents, or less than 1 percent, at $33.30 in morning trading.


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