Press Release

STAVANGER, Norway & HOUSTON, Jun 12, 2003 (BUSINESS WIRE) -- Statoil and Halliburton (NYSE:HAL) announced today that they have completed a successful test of a new game-changing formation evaluation technology on the Norwegian shelf. An LWD formation tester, the GeoTap(TM) sensor, was used to quantify formation pressure during drilling operations.

This inaugural job was completed by Halliburton's Sperry-Sun product service line onboard the Bideford Dolphin at the Borg Field while drilling a horizontal production well in the Vigdis Extension development. The GeoTap tool, part of Sperry-Sun's Stellar(TM) MWD/LWD suite, was run in combination with a complete logging-while-drilling sensor package and the Geo-Pilot(R) rotary steerable drilling system. Repeat formation pressures were taken and successfully transmitted to surface. This is the first time that this type of technology has been successfully applied on the Norwegian shelf.

"Halliburton is excited that we are providing new technology for our customers on the Norwegian shelf that is dramatically changing the game in terms of reservoir evaluation, borehole construction quality, reservoir deliverability, and most significantly cost per well," said Jan Erik Klungtveit, Halliburton's Sperry-Sun, country manager."

A primary objective was to determine whether or not two members of the Draupne formation were in communication. The GeoTap formation tester pressure measurements led to the conclusion that the upper member of the Draupne formation was not in communication with lower sections and could not be pressure supported using existing water injection wells. Several rig days were saved by cancellation of a wireline formation pressure test.

"We have closely monitored the LWD formation pressure technology for many years and we are pleased with the achievements that Halliburton has showed in this well," says Harald Laastad, Statoil, leader of the LWD Technology Group.

Statoil's objective is to enable well pressure testing at any time during the drilling operation to improve safety related to well control and define depletion profiles. This inaugural job suggests that this technology could offer customers a considerable cost reduction. The rig time saved during this type of operation could exceed 50 hours per well.

The GeoTap LWD formation tester obtains direct pore pressure as the well is drilled, with accuracy and precision comparable to that of wireline formation testers. Real-time pressure data is transmitted from the tool to surface via the mud column and also recorded to memory for more detailed analysis. The device allows for multiple tests to be performed in a single drilling run.

Halliburton, founded in 1919, is one of the world's largest providers of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services Group and Engineering and Construction Group business segments. The company's World Wide Web site can be accessed at www.halliburton.com.

The Geo-Pilot rotary steerable system was designed in collaboration with Japan National Oil Corporation (JNOC).

SOURCE: Halliburton

CONTACT:          Halliburton Communications, Stavanger
                  Birger Haraldseid, 47 51 83 72 98
                  or
                  Halliburton Public Relations, Houston
                  Beverly Scippa, 713/759-2601

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SOURCE: Halliburton