press release

Chevron Press Release - Chevron Agrees To Acquire Rutherford Moran Oil Corporation

SAN FRANCISCO, Dec. 23, 1998 -- Chevron announced today it has executed a definitive merger agreement to acquire Rutherford Moran Oil Corp. for approximately $91 million. Rutherford Moran owns a 46.34 percent interest in Block B8/32 in the Gulf of Thailand.

This acquisition provides Chevron with a strategic entry into the Thailand gas market, said Richard Matzke, president of Chevron Overseas Petroleum Inc. and a director of Chevron Corp. We see long-term potential in South East Asia and are confident this entry will lead to additional attractive investments, he added.

Chevron is extremely pleased to play a role in developing Thailands oil and gas resources, said Matzke.

Block B8/32, located about 125 miles offshore, has proven reserves of 153 million barrels of oil equivalent gas with upside potential. Current production is from the Tantawan field with significant development and delineation currently underway in two new fields. Block B8/32 also has additional exploration potential and is adjacent to exploration Blocks 7, 8 and 9 in which Chevron holds an interest.

The agreement is subject to certain commercial conditions which must be satisfied for the transaction to be completed, and there can be no assurance these conditions will be met.

Updated: December 1998