press release

Chevron Press Release - Chevron Acquires New Exploration Acreage In Colombia

SAN FRANCISCO, Dec. 10, 1996 -- Chevron announced today the signing of an association contract with Empresa Colombiana de Petroleos (Ecopetrol), the state oil company of Colombia, to explore more than 166,000 acres in the Llanos foothills, an area well known for its prolific oil production.

Located 70 miles east-northeast of the capital city of Bogota, the new contract area, known as the Galeron block, lies adjacent to the giant Cusiana oilfield and on trend with new crude oil and gas discoveries at Florena, Pauto Sur, and Volcanera.

"We are very eager to explore this new acreage," said David Steele-Figueredo, managing director of Chevron Latinoamerica S.A., the unit of Chevron responsible for upstream operations in South America. "Chevron has been active in Colombia for more than 72 years, and we are delighted that this new contract will further enhance Chevron's long-established working relationship with Ecopetrol."

During the exploration phase, Chevron holds a 100 percent interest in the 67,422-hectare Galeron block. Exploration plans include a seismic program which will begin in early 1997. Following acquisition and interpretation of the geologic and seismic data, determinations will be made regarding possible future drilling plans.

In other operations in Colombia, Chevron holds 50-percent interest in current daily production of approximately 34,000 barrels of crude oil from the Castilla and Chichimene fields, which it operates on behalf of itself and Ecopetrol. In addition to the production from these fields which are located in the Cubarral block of the Llanos Basin, Chevron also continues its exploratory work in the Rio Blanco exploration area of Colombia's southern Llanos foothills.

Signing the agreement on behalf of the companies are Luis Bernardo Florez, president of Ecopetrol, and Danny Rojas, president of Chevron Petroleum Company of Colombia.

Updated: December 1996