Blade Joins DeepStar Phase VII as Contributing Member

Monday, 17 January2005 – Frisco & Houston, Texas, U.S.A.

Blade Energy Partners is pleased to announce that effective 14 January 2005 Blade joined the DeepStar consortium as Contributing Member to its ongoing Phase VII. DeepStar is a long-running collaborative deepwater technology forum focused on creating value in the development of deepwater assets.

DeepStar’s expressed Mission is:

Facilitate a cooperative, globally aligned effort focused on identification and development of economically viable methods to drill, produce and transport hydrocarbons from deepwater. DeepStar PhaseVII focus is on water depths from 4,000 to 10,000 feet.

Since its inception by Texaco, DeepStar has been Houston-based; and ChevronTexaco Energy Technology Company continues today providing administrative leadership to the consortium. The Participant operator companies comprise the DeepStar Management Committee, and their interests and needs steer individual Projects as sponsors.

The current Phase VII group of 10 Participant operator companies collaborates with 50 Contributing consulting, service and supply members through 7 Committees on a set of 19 Projects.

Blade’s DeepStar participation will be lead by Dave Lewis, Executive Vice President, in Frisco, and Bob Pilko, Strategic Relations Director, in Houston.

Though DeepStar was well known by Blade in years past, we are pleased in 2005 to offer our resources as Contributor to this premier technological group. We trust Blade’s unique expertise in advanced well construction, drilling & production riser design, pipeline integrity and subsea metallurgy & applications will bring additional value to all DeepStar participants.

– Bob Pilko, Blade.

DeepStar Phase VII Participants are:

Anadarko Kerr-McGee

bp Marathon

ChevronTexaco Petrobras

ConocoPhillips Total

ENI Unocal

DeepStar Phase VII Committees are:

Controls, Pipelines, & Subsea Equipment

Drilling & Completion

Flow Assurance

Met Oceans

Regulatory

Systems Engineering

Vessels, Moorings , & Risers

Additional Blade information may be found at: www.blade-energy.com; or by directly contacting: Bob Pilko, bpilko@blade-energy.com, +1-281-206-2000 / +1-832-202-7341, or David Lewis, dlewis@blade-energy.com, +1-972-712-8407 / +1-972-841-4190.

Additional DeepStar information may be found at www.deepstar.org; or by directly contacting: Sean Hanrahan, +1-281-596-3302, hanr@chevrontexaco.com, or Bonnie Gray, Administrative Assistant, +1-281-596-3305, bonniegray@chevrontexaco.com.