press release

Chevron Press Release - Chevron Announces Encouraging Typhoon Appraisal Well In Gulf Of Mexico

NEW ORLEANS, May 11, 1999 -- Chevron today announced positive results on a second appraisal well that has prompted its subsidiary, Chevron U.S.A. Production Co., and Broken Hill Proprietary Co. Ltd. to tentatively plan to achieve first oil from the Typhoon deepwater project in the Gulf of Mexico by mid-2001.

Project operator Chevron (50 percent) and joint venture partner BHP (50 percent) recently suspended operations on their Green Canyon 237 #2 appraisal well after encountering 164 net feet of oil in two horizons. The well is located 3,000 feet east-northeast of the GC 237 #1 appraisal well that drilled 310 net feet of oil over several horizons in February. GC 237 #1 and #2 were drilled following Chevron's first Typhoon exploration well, GC 236 #1, which penetrated 130 net feet of oil on a separate fault block drilled in 1998. A third appraisal well, GC 237 #3, is in progress and should be completed by July. The Typhoon project area is located approximately 100 miles off the Louisiana coast in about 2,000 feet of water.

A joint project team comprised of Chevron and BHP personnel is in place and working toward a first oil target date of July 1, 2001. The appraisal process is continuing, and the project team is evaluating a range of production development options.

Typhoon will be Chevron's third deepwater development in the Gulf of Mexico. Genesis, which Chevron operates with a 57 percent interest, began production in January. Genesis currently produces 25,000 barrels of oil and 25 million standard cubic feet of natural gas per day from its first two development wells.

Gemini, another deepwater development project partnered by Chevron, is underway and should be on production in July. Chevron owns a 40 percent interest in the Gemini project, which is operated by Texaco.

Together, Genesis, Gemini and Typhoon are expected to reach peak production by 2002, making Chevron's net production from current deepwater developments approximately 70,000 barrels of oil and equivalent gas per day.

Note to Editors:

Typhoon Partners are:
Chevron U.S.A. Production Co. (Operator) ? 50 percent
Broken Hill Proprietary Co. Ltd. - 50 percent

The Green Canyon area is an important component of BHP Petroleum's deepwater exploration acreage in the Gulf of Mexico. BHP has an equity interest in 31 blocks in the northern and central Green Canyon area, in water depths ranging from 1,200 feet to 4,600 feet. BHP was also the high-bidder on eight additional leases in this area in the 1999 OCS lease sale. The area also contains Green Canyon 18 and Green Canyon 60, two Mobil-operated producing assets in which BHP has a 25 percent and 45 percent working interests respectively.

Updated: May 1999