ConocoPhillips Opts Out of Exploration in Two Peru Blocks

HOUSTON--(BUSINESS WIRE)--ConocoPhillips (NYSE: COP) today announced a decision not to pursue further exploration activities in Peru Blocks 123 and 129. This decision to withdraw as operator and opt out of the next exploration period is part of the company’s strategic plan to optimize its portfolio of assets.

“After careful consideration, we reached this decision as part of the company’s broader strategic effort to re-evaluate our investments and asset portfolio since becoming an independent E&P company.”

“It was a difficult decision to leave these blocks where we have worked so closely with communities and demonstrated our ability to work responsibly in an environmentally sensitive area,” said Larry Archibald, senior vice president of exploration for ConocoPhillips. “After careful consideration, we reached this decision as part of the company’s broader strategic effort to re-evaluate our investments and asset portfolio since becoming an independent E&P company.”

ConocoPhillips’ 45 percent interest will be transferred to Gran Tierra Energy Peru SRL, along with the operatorship of the blocks subject to government approvals. ConocoPhillips will work with Perupetro, the Peruvian petroleum licensing agency, and Gran Tierra Energy Peru SRL to facilitate an efficient transition.

ConocoPhillips recently completed two rounds of seismic exploration activities in Blocks 123 and 129. The company is proud of the strong relationships that have been built over several years with about 60 communities near these two blocks in the Marañon Basin. The company also appreciates the support provided by the Peruvian government and other stakeholders. For more information about the company’s community engagement in Peru, please click here.

--- # # # ---

About ConocoPhillips

Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 30 countries and approximately 16,500 employees as of June 30, 2012. Production averaged 1.59 million BOE per day for the six months ended June 30, 2012, and proved reserves were 8.4 billion BOE as of Dec. 31, 2011. For more information, go to www.conocophillips.com.

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This press release contains forward-looking statements. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. In many cases you can identify forward-looking statements by terminology such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that such expectation or belief will result or be achieved. The actual results of operations can and will be affected by a variety of risks and other matters including, but not limited to, changes in commodity prices; changes in expected levels of oil and gas reserves or production; operating hazards, drilling risks, unsuccessful exploratory activities; difficulties in developing new products and manufacturing processes; unexpected cost increases; international monetary conditions; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; and general domestic and international economic and political conditions; as well as changes in tax, environmental and other laws applicable to our business. Other factors that could cause actual results to differ materially from those described in the forward-looking statements include other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.