BP (BP)

Lower 48 States

        In the Lower 48 States (Onshore), our 2004 natural gas production was 1,942 mmcf/d, which was down 8% compared to 2003. Liquids production was 142 mb/d, down 11% compared to 2003. The year-on-year decrease in production is attributed to normal decline. In 2004, we drilled approximately 400 wells as operator and continued to maintain a level programme of drilling activity throughout the year.

        Production is derived primarily from two main areas:

—

In the Western Basins (Colorado, New Mexico, and Wyoming) our assets produced 221 mboe/d in 2004.



—

In the Gulf Coast and Mid-Continental basins (Kansas, Louisiana, Oklahoma and Texas) our assets produced 190 mboe/d in 2004.

        Significant events included:

—

Acquisition of Kerr McGee's interests in the Arkoma Red Oak and Williburton fields in exchange for the Gulf of Mexico Deep Water Blindfaith prospect. The deal closed on February 1, 2005.



—

Wyoming Oil & Gas commission approval of our application for field-wide 10-acre spacing in the Jonah field, allowing for approximately 500 potential locations, and 80-acre spacing in the Wamsutter field, allowing for approximately 3,000 potential locations. The increased density of drilling locations allows an acceleration of production.

Lower 48 States

        In the Lower 48 States (Onshore), our 2004 natural gas production was 1,942 mmcf/d, which was down 8% compared to 2003. Liquids production was 142 mb/d, down 11% compared to 2003. The year-on-year decrease in production is attributed to normal decline. In 2004, we drilled approximately 400 wells as operator and continued to maintain a level programme of drilling activity throughout the year.

        Production is derived primarily from two main areas:

—

In the Western Basins (Colorado, New Mexico, and Wyoming) our assets produced 221 mboe/d in 2004.



—

In the Gulf Coast and Mid-Continental basins (Kansas, Louisiana, Oklahoma and Texas) our assets produced 190 mboe/d in 2004.

        Significant events included:

—

Acquisition of Kerr McGee's interests in the Arkoma Red Oak and Williburton fields in exchange for the Gulf of Mexico Deep Water Blindfaith prospect. The deal closed on February 1, 2005.



—

Wyoming Oil & Gas commission approval of our application for field-wide 10-acre spacing in the Jonah field, allowing for approximately 500 potential locations, and 80-acre spacing in the Wamsutter field, allowing for approximately 3,000 potential locations. The increased density of drilling locations allows an acceleration of production.