press release

Chevron Press Release - Chevron Confirms New Tertiary Crude Oil Discovery Offshore Rupublic Of Congo

SAN FRANCISCO, Feb. 12, 1998 -- Chevron today confirmed a new crude oil discovery in the Haute Mer deepwater area offshore Republic of Congo.

The discovery, named Bilondo Marine No. 1, is located approximately ten miles (16 kilometers) southwest of the Nkossa Field, and is the first discovery in the Congo to confirm potentially commercial crude oil accumulations from Tertiary sands -- geologic-age deposits which account for the predominant percentage of the world's recoverable oil reserves.

Richard Matzke, president of Chevron Overseas Petroleum, Inc. and a director of Chevron Corp., was enthusiastic about the new discovery, and pointed out that previous discoveries made offshore Congo by Chevron and partners found crude oil in older -- and historically less prolific -- reservoirs of the Cretaceous period.

"Bilondo could represent exciting potential for future discoveries of additional Tertiary crude oil deposits," said Matzke, adding that the new discovery is suspected to be on-trend with Chevron's recent giant discoveries to the south, in Block 14 offshore Angola in the Cabinda Concession.

Bilondo encountered 85 feet of net oil-bearing sands in two separate intervals, and yielded crude oil at a combined rate of 8,520 barrels per day. The well was drilled in 1,755 feet (535 meters) of water, and the intervals were drill-stem tested at depths below 5,500 feet (1,678 meters).

The Bilondo discovery resulted from an aggressive developmental drilling program expanded in the Haute Mer permit area following the 1995 discovery of Moho Marine No. 1, located nine miles (14.5 kilometers) west of Nkossa. Additional drilling will be forthcoming to delineate the extent of the new discovery.

Notes to editors:

Chevron companies have been operating in the Republic of Congo since 1988. Chevron Overseas (Congo) Limited holds a 30-percent interest in the Bilondo discovery. Elf Congo holds 51 percent interest and is operator. The remaining shares are held by Hydro Congo (15 percent) and Energy Africa Haute Mer Limited (4 percent).

Updated: February 1998