press release

Chevron Press Release - Chevron Acquires Natural Gas Operations in Pakenham Field Area Near Midland

HOUSTON, Nov. 17, 1994 -- Chevron U.S.A. Production Company, a division of Chevron U.S.A. Inc., today announced the purchase of all stock in Pakenham, Inc., a subsidiary of Abilene-based Wes-Tex Drilling Company. Included in the sale are 47 natural gas producing wells in West Texas. Terms of the sale were not disclosed.

The property is located in the Pakenham Field area about 100 miles south of Midland in Terrell County. Formerly operated by Amarillo-based Riata Energy, Inc., the wells are producing from the Wolfcamp Formation at an approximate depth of 8,000 feet. Average production is about 26 million cubic feet per day. The large resource base acquired by Chevron holds the potential for increasing the company's gas reserves. The company expects to aggressively add to the number of producing wells over the next several years.

"Acquiring operations in this active exploration and production area has long-term benefits for our natural gas business," said Ray Galvin, president of Chevron U.S.A. Production Company. "In addition, this is an opportunity for Warren Petroleum, our natural gas processing unit, to expand its operations in this strategically important area."

Included in the acquisition is a gathering system that delivers natural gas to a pipeline owned by San Antonio-based Valero Transmission Company. Warren Petroleum, based in Tulsa, will expand its operations to include the Pakenham gas gathering and processing business.

Chevron U.S.A. Inc., an operating unit of San Francisco-based Chevron Corporation, explores for and produces crude oil and natural gas in the United States. It is the second largest producer of natural gas in the United States and the largest producer of oil and natural gas (combined) in the Gulf of Mexico.

Updated: November 1994