press release

Chevron Press Release - Chevron Becomes Operator Of Alaska's Kuvlum And Hammerhead Units

SAN FRANCISCO, Jan. 19, 1998 -- Chevron U.S.A. Inc., Union Texas Alaska, LLC, and Shell Frontier Oil & Gas Inc. have executed an agreement that establishes Chevron as operator with 60 percent of both the Kuvlum and Hammerhead units in the Beaufort Sea, Alaska. The agreement also provides that Union Texas and Shell will each have an undivided 20 percent working interest ownership in every lease in both of the captioned units.

"Chevron is pleased with our new partnership with Union Texas and Shell and we look forward to working with the U.S. Minerals Management Service to maintain both of the units and ultimately establish economic oil and gas operations in the Beaufort Sea," said Dave Birsa, Chevron's exploration manager for Alaska. "Chevron views this agreement as verification of our desire to invest in Alaska. We cannot diminish the importance that federal and state agencies in Alaska must work cooperatively with industry in order for Alaska investment to compete with other worldwide opportunities."

Chevron continues to maintain a substantial North Slope acreage position composed of private, state of Alaska, and federal acreage. The Kuvlum and Hammerhead units are located approximately 10-15 miles north/northeast of Flaxman Island in the Beaufort Sea.

Updated: January 1998