Hess Corporation declared a 2011 capital and exploratory budget of $5.6 billion, nearly all of which is targeted for Exploration and Production: $3.1 billion for production, $1.6 billion for developments and $900 million for exploration.

John B. Hess, Chairman and CEO, stated, "We are pleased to have a global portfolio of attractive investment opportunities. We expect to fund our 2011 program from internally generated cash flow."

Greg Hill, President of Worldwide Exploration and Production, said: "More than 35 percent of our capital and exploratory expenditures in 2011 are devoted to unconventional oil projects. We have a balanced program that will underpin our long term target of growing reserves and production by at least 3 percent per year."

Production expenditures of approximately $3.1 billion include: - Bakken oil shale in North Dakota, where Hess plans to operate 15 rigs and expand production facilities - Drilling production and water injection wells at Valhall (Hess 64 percent working interest) in Norway and Shenzi (Hess 28 percent) in the deepwater Gulf of Mexico - Well workovers and completions at Ceiba and Okume Complex (Hess 85 percent - operator) in Equatorial Guinea

Field development expenditures of $1.6 billion include: - Expansion of the Tioga Gas Plant and construction of a crude oil rail loading and storage facility to support the development of the Bakken oil shale in North Dakota - Field redevelopment work at Valhall to increase production capacity and extend field life by 40 years is expected to be completed during 2011 - Pony (Hess 100 percent - operator) and Tubular Bells (Hess 40 percent - operator) in the deepwater Gulf of Mexico, where engineering and design work is progressing

Exploration expenditures are budgeted at $900 million, including: - Conventional deepwater drilling in Egypt, Ghana, Indonesia and Brunei - Unconventional onshore drilling in the Eagle Ford Basin in Texas and the Paris Basin in France

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