Press Release

HOUSTON--(BUSINESS WIRE)--Sept. 27, 2004--Halliburton (NYSE:HAL) announced today at the 2004 Society of Petroleum Engineers conference that they are providing services to drill two intersecting horizontal wells for the unique purpose of connecting stranded gas reserves to a marketplace that lies on the opposite side of a steep and treacherous gorge in Canada. Once completed, this will be the first time in history that a well intersection from two surface locations separated by a two-mile-wide gorge has been drilled. Other conventional solutions would have required a significant amount of surface disruption and environmental risks.

"The project is groundbreaking not only from a technological aspect but from a health, safety and environment point of view. Equally important as the application of leading-edge real time drilling and reservoir technology is the fact that we are attempting an engineered solution that minimizes the environmental impact while improving the social and economic bottom lines. This is by far one of the best examples of truly revolutionary convergence of technology and the industry's sustainable development plan," said Dave Lesar, chairman, president and CEO, Halliburton. "85 years ago, Erle P. Halliburton began this company with groundbreaking state-of-the-art cementing technology that changed the way that people in this industry work. Today, Halliburton continues to be the technology leader in this industry and as we celebrate our 85th anniversary the breadth of technology that we encompass makes us a leader in driving a positive long-term outlook for the triple bottom line."

Numerous Halliburton technologies were used to ensure a high level of wellbore integrity necessary for this project. Sperry-Sun's Geo-Pilot(R) rotary steerable and SlickBore(R) matched drilling systems have allowed the two extended reach wells to be drilled more smoothly. Halliburton's sophisticated surveying technology will enable the two wellbores to be intersected and connected from distances previously thought to be impossible. Other technologies included custom designed FM3000(TM) fixed cutter PDC and Energy Balanced(R) Series roller cone drill bits from Security DBS, DrillAhead(R) Hydraulics Module and engineered fluid solutions from Baroid and DecisionSpace(R) drilling and reservoir visualization software from Landmark Graphics. The team integrated all pertinent data in real time to feed into Halliburton's Calgary Real Time Operations Center, which was designed to enable customers to make better decisions not only in the initial design phase of their complex projects, but to make better choices as new information is available to update well plans.

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 and Engineering and Construction Groups. The company's World Wide Web site can be accessed at www.halliburton.com.

    CONTACT: Halliburton Public Relations, Houston
             Beverly Scippa, 713-759-2601
             beverly.scippa@halliburton.com

    SOURCE: Halliburton