press release

Chevron Press Release - Chevron, ASRC And BP Finalize Lease Agreement

SAN FRANCISCO, June 4, 1998 -- Chevron U.S.A. Inc., the Arctic Slope Regional Corp. (ASRC) and BP Exploration (Alaska) Inc. (BPX) announced today that they have finalized a long-term lease agreement for the exploration and development of ASRCs oil and gas interests in the Kaktovik area of the North Slope of Alaska. Terms of the agreement were not disclosed.

"We are pleased to continue our long-standing relationship with Chevron and BPX," said Jacob Adams, president and chief executive officer of ASRC. "We have worked together for nearly 15 years to evaluate ASRCs mineral interests in the Kaktovik area. Although we cannot specifically comment on details of the U.S. Geological Surveys recent report, we are pleased that they have confirmed that the Arctic National Wildlife Refuge (ANWR) is indeed an area with important energy resource potential, and have endorsed the widely held view that it is one of the few remaining areas in the domestic United States for significant hydrocarbon reserves. We continue to stress the need for the federal government to allow full access to our property."

Dave Birsa, Chevron exploration manager for Alaska, said, "The ANWR coastal plain is very special. It is on trend with the prolific oil fields of the central North Slope and has significant geological potential. It is also an area where the arctic environment must be protected. Because of our relationship with ASRC and the native villages on the north slope, we feel we have the unique ability to explore, and ultimately develop, the resources of the area in an environmentally responsible manner that takes into consideration the needs of everyone involved."

"ANWR offers the greatest potential for a world-class oil discovery on the North Slope," added Neil Ritson, exploration vice president for BPX in Alaska. "We continue to strongly support environmentally sound access to ANWR. ANWR is undoubtedly the most important area of new potential in Alaska."

ASRC owns subsurface oil and gas mineral rights to 92,000 acres on the coastal plain of ANWR on the eastern North Slope. The acreage is about 100 miles east of the Prudhoe Bay oil field.

Chevron, the operator, and BPX have had the land under lease since 1984. The only well ever drilled onshore in the ANWR coastal plain, the KIC #1, was drilled in 1984-85. Well results remain confidential.

Updated: June 1998