Gas Investment

BP PLC
13 October 2005


Press Release

October 13, 2005

BP ANNOUNCES $2.2 BILLION EXPANSION OF WAMSUTTER NATURAL GAS FIELD

BP today announced that it will invest up to $2.2 billion to double production
from its acreage in the Wamsutter gas field in the Rockies region of the United
States.

The multi-year drilling program is expected to increase BP's share of ultimate
recovery from the field by 450 million barrels of oil equivalent and increase BP
daily net production from 125 to 250 million standard cubic feet per day by the
end of the decade.

The $2.2 billion outlay includes the drilling of 2,000 wells over the next 15
years and a two-year, $120 million technology field trial program which could
lead to additional field development in the future.

'This major investment follows more than two years of focused, accelerated
drilling and technical studies which revealed the untapped potential of the
Wamsutter resource. It has created 1,600 new development locations,' said Tony
Hayward, chief executive, BP Exploration and Production. 'It will allow us to
continue aggressive development of one of the largest gas fields in the United
States.'

The Wamsutter project is part of a projected 10-year, $15 billion investment
program BP plans for its North American onshore operations.

'BP is committed to continued development of secure US energy supplies and is
working with stakeholders and with local, state and federal officials to
increase the supply of clean-burning natural gas to US markets,' said Ross
Pillari, President of BP America. 'Expanded development of the Wamsutter gas
field is fundamental to that strategy.'

Notes to editors:

  • The Wamsutter field is located in Wyoming. Discovered in the 1950s, it
    encompasses 1,700 square miles and is one of the largest tight gas resources
    in North America. The field has multiple operators and has produced 2
    trillion cubic feet of gas from more than 2,000 wells.

  • BP is the largest operator in the Wamsutter field with an interest in
    352,000 leased acres. BP operates 950 wells.

  • BP is one of the world's leading energy companies. This year, the
    company will spend more than $5 billion to find, develop, transport and
    deliver new energy supplies to the US market.

  • BP is one of North America's largest producers and marketers of natural
    gas. To further expand US gas supply the company is seeking permits for
    construction of new LNG (liquefied natural gas) receiving terminals in Texas
    and New Jersey and is working to develop a viable pipeline project to
    deliver Alaska natural gas to the North American market.

  • BP is also investing in the Deepwater Gulf of Mexico, where four new
    fields have started production in the last three years and two new fields
    are being developed.

For further information contact:

David Nicholas, BP press office, London: [phone]
Ronnie Chappell, BP press office, Houston: 281-366-5174
Jack Rigg, BP America, Denver: 303-830-3250
Marti Gazzier, BP press office, Houston: 281-236-2283

- ENDS -


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