Maurel & Prom - 2010 Q1 sales

By Maurel Prom, PRNE
Wednesday, May 5, 2010

PARIS, May 6, 2010 -

    - 2010 Q1 sales of EUR48.9m

    - Entitlement of 7,942 bopd (9,114 boepd including Venezuela)

    - Success of OMGW-201 well

    2010 first quarter activity

    Sales: EUR48.9m

        - Oil production: EUR33.5m
        - Oil-related services: EUR23.5m
        - Oil hedging: EUR(8.1)m

     Production & Development

        - Testing started on the OMGW-101 well on 15 March 2010
        - Success of OMGW-201 well after testing began on 24 April 2010
        - Testing started on the OMBG-1 well on 14 April 2010
        - EDA obtained for the Banio field (92.5%)
        - Production to start up again in Nigeria (acquisition in progress)

    Exploration & Appraisal

        - P&A of M'Bafou and TieTie NE in the Congo
        - P&A of Draco in Syria
        - Success of OMOC-N-1 well
        - Confirmation of Kissenda play on the Omoueyi license


        - Entry into Nigeria
        - Expansion of the exploration portfolio in Tanzania
    2010 first quarter sales

    in EURm                 Q1 2010  Q1 2009

                     Congo      0.0      0.1
                   Tilapia      0.0      0.1
                   Kouilou      0.0      0.0
                     Gabon     33.5      1.0
                     Banio      1.1      1.0
                      Onal     26.8      0.0
                      Omko      5.6      0.0
                      Omgw      0.0      0.0
                  Tanzania      0.1      0.0
                 Mnazi Bay      0.1      0.0
            Oil production     33.5      1.0   NA

      Oil-related services     23.5     26.3  -11%

                     Other     -8.1      0.0

                     TOTAL     48.9     27.3   79%

The Group's sales for first quarter 2010 amounted to EUR48.9m
compared with EUR27.3m for first quarter 2009.

Change in accounting method regarding the treatment of the oil
portion that corresponds to the corporate income tax included in profit oil.

As of 1 January 2010, corporate income tax paid in kind to the
State is recorded in the Group's accounts, generating an equivalent increase
in sales. This is the first time this tax, which is included in profit oil
paid in kind to the State, has been recorded as such. As no sales were
recorded in first quarter 2009, data for this period did not need to be

The increase in sales was due to the production start-up of
the Onal and Omko fields in Gabon at the end of first quarter 2009. These
fields did not start generating sales until the second quarter of 2009.

The Group recorded sales of EUR0.1m for the Mnazi Bay field in
Tanzania, of which the Group acquired a 38.22% stake in 2009.

Early in 2009, the Group implemented a hedging policy on oil
prices. The average hedge price in first quarter 2010 was $60.2/b, whereas
the average price of Brent was $76.2/b. This led to a negative adjustment of

Excluding hedging, the average sale price in 2009 was $73.9/b for
production from Onal and Omko and $52.0/b for production from Banio.

Caroil's contribution to sales (oil services) in first quarter
2010 was EUR23.5m versus EUR26.3m for the same period in 2009. Expressed in
US dollars, Caroil's contribution to sales was US$32.5m.

Caroil's individual company sales in first quarter 2010 were
EUR35.1m. Expressed in US dollars, Caroil's individual company sales were

Caroil generated 66% of its business with customers other than
Maurel & Prom.

    Market Data                   2010      2009    Change
                              3 months  3 months
    Exchange rate (EUR/US$)       1.38      1.30       +6%
    US$/EUR exchange rate         0.72      0.77       -6%
    Brent (US$/b)                 76.2      45.7      +67%

For the first 90 days of 2010, the average price of Brent was
up 67% compared with the same period in 2009. However, the decline in the
American currency had an unfavourable effect on sales, limiting the positive
impact of changes in oil prices.

Maurel & Prom entitlement: 7,942 bopd.

Following the sale of Hocol Colombia in 2009, Maurel & Prom's production
was generated exclusively by its assets in Gabon.

The table below, in barrels per day, indicates production data based on
taxes and fields in production.

    2009                     Gross     Maurel &    Entitlement  Production
                          production     Prom                       sold
                           from the    Working
                            fields     Interest
    in boepd                Q1 2010   Q1 2010         Q1 2010     Q1 2010

    Gabon                    10,498     8,977           7,942       6,543
    Banio 100% up to 12 March,
    92.5% thereafter*           354       354             354         306
    Onal      85%             8,534     7,254           6,383       5,158
    Omko      85%             1,610     1,369           1,205       1,079
    Omgw     100%               156       156             138           -

    Sub-total                10,498     8,977           7,942       6,543

    Venezuela   26.35%        5,257     1,385           1,172       1,172

    Total Group              15,755    10,362           9,114      7 ,715

*Assuming Tulip Oil increase of 7.5%

Oil and gas production in Venezuela, net of a 30%-deduction in kind on
oil, was 1,172 barrels per day equivalent for first quarter 2010. Oil
represented 51% of gross production. This activity is not included in the
Group's sales.

Three oil extractions were carried out in January and February
for production from the Onal and Omko fields and one in February for
production from the Banio field. This accounts for the difference between
entitlement of 7,942 bopd and production actually sold of 6,543 bopd.

Following the long-term testing of the Banio-2 well, which showed
stabilised production of 400 bopd, the Group requested and obtained on 12
March 2010
an Exclusive Development Authorisation for the Banio field. To
date, only the Banio-2 well is in production. The Group is currently drilling
the Banio-5 well, the results of which will be known within a few weeks.

Following the discovery of the Gwedidi field to the northeast of Onal,
the Group began work in first quarter 2010 to link the OMGW-101 well to the
Onal production centre. This well went into production on 15 March 2010. The
pipeline connecting the Gwedidi field to Onal was laid in such a way as to
run through the M'Bigou field, whose discovery well OMBG-1, drilled in August
, was tested flowing with 700 b/d in the upper "Gres de Base". Testing on
the OMBG-1 well began on 14 April 2010.

The OMGW-201 well, located at the northernmost end of the Gwedidi field,
was successfully drilled in April 2010. Testing began on 24 April 2010.

The Onal, Omko, M'Bigou and Gwedidi fields today produce 12,000 bopd at
100%. This level is set to increase as a result of more water injection, the
completion of work on wells in production and the drilling of additional
wells in the Gwedidi and M'Bigou fields.

It should be noted, however, that the strict application of
administrative procedures for customs clearance in Gabon can cause delays in
the delivery of the operating and well-drilling equipment needed for these

For more information:

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 relate to events and depend on
circumstances that will or may 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 price fluctuations in crude oil;
exchange rate fluctuations; uncertainties inherent in estimating quantities
of 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 for trading on Euronext Paris -
                      Compartment A - CAC mid 100 Index
             Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA

    Upcoming meetings:

    20/05/2010              Shareholders' Meeting


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