press release

Chevron Press Release - Chevron Begins Oil Production From Moran Field In Papua New Guinea

SAN FRANCISCO, Jan. 29, 1998 - Chevron announced today that it began an Extended Well Test (EWT) at the Moran 1X well near Lake Kutubu in Papua New Guinea. The EWT, which will produce oil at a rate of 10,000 barrels per day, will provide Chevron's earth scientists and engineers with a better understanding of the size of the Moran oil reservoir.

Discovered in 1996, Moran is currently estimated to hold between 50 and 100 million barrels of oil. Using the extended well testing technique, Chevron's engineers will gain valuable information about underground oil reservoirs ahead of time, while drilling and development plans are still being evaluated.

The oil produced will be exported and sold.

"As Papua New Guinea's only oil producer, Chevron's experience in the region has enabled the Moran development to be put on a fast track," said Dick Matzke, president of Chevron Overseas Petroleum Inc. "It has only been 16 months since the discovery of oil to production," added Matzke.

Chevron has interests in the Kutubu Field, which has already produced 220 million barrels of oil, and the Gobe Field, which is expected to produce approximately 100 million barrels of oil. Gobe production is expected in the first quarter of 1998.

Chevron-operated production from the three fields will reach a peak production rate of 122,000 barrels of oil per day in 1999.

Updated: January 1998