press release

Chevron Press Release - Chevron Announces Major Gas Discovery Offshore Australia

SAN FRANCISCO, Feb. 25, 1997 - Chevron today announced that a major natural gas field has been discovered offshore Western Australia in the prolific Gorgon/Chrysaor trend in the Carnarvon Basin.

"The Dionysus discovery has added to the overall gas reserves held by Chevron in the northwest of Australia. This reserves addition will assist the implementation of Chevron's vision of a major expansion of the Australian LNG industry," said Richard Matzke, president of Chevron Overseas Petroleum Inc.

The discovery well, Dionysus-1, was drilled in Exploration Permit WA-253-P. Chevron and Texaco each hold a 50 percent interest in the field, which is located about 6 1/2 miles to the north of the Gorgon and Chrysaor fields. The Dionysus discovery was drilled to a depth of 14,492 feet, and tested gas at a combined rate of 127 million standard cubic feet per day from two zones between 10,383 feet and 10,640 feet.

Matzke said that plans for the area in 1997 include the acquisition of additional seismic data, and that further exploratory drilling is expected to follow.

Notes to editors:

Exploration Permit WA-253-P covers approximately 517,000 acres (2,091 square kilometers), and was awarded to Chevron and Texaco on Jan. 19, 1994, for an initial period of six years. The permit is operated by West Australian Petroleum Pty Ltd (WAPET) on behalf of the two companies.

Following acquisition of the permit, a 720-square-kilometer, 3-D seismic survey was acquired over the western part of the permit. Interpretation of the seismic data lead to the selection of the Dionysus drilling location.

Updated: February 1997