press release

Chevron Press Release - Chevron Confirms Yet Another Tertiary Discovery Offshore Republic Of Congo

SAN FRANCISCO, Feb. 25, 1998 -- Chevron today confirmed yet another crude oil discovery in the Haute Mer deepwater area offshore Republic of Congo.

The appraisal well, named Moho Marine No. 3, found crude oil while it was drilling toward a 12,000-foot objective in the Albian (Cretaceous) geologic age. Halfway to its target, Moho-3 struck oil in a new oil-bearing section and tested at a cumulative rate of 6,800 barrels per day from Tertiary sands.

"This is an exciting discovery in that it reconfirms the significance of Tertiary accumulations -- both in the Haute Mer permit area here in Congolese waters, and in Chevron's adjoining exploration area, Block 14, offshore Angola," said Richard Matzke, president of Chevron Overseas Petroleum, Inc. and a director of Chevron Corp. Matzke noted that Moho-3 is the second offshore Congo discovery in the past 30 days to be suspected of being on-trend with Chevron's recent giant discoveries to the south, in Block 14 offshore Angola in the Cabinda Concession.

Today's announcement follows closely on the heels of the disclosure Feb. 12 of the Bilondo discovery, which tested at 8,520 barrels of oil per day, and which was 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. Previous discoveries made offshore Congo by Chevron and partners -- as well as existing production offshore Congo and Angola -- emanate from older and historically less prolific reservoirs of the Cretaceous period.

The Moho-3 discovery resulted from an aggressive developmental drilling program expanded in the Haute Mer permit area following the 1995 discovery of Moho Marine No. 1 and the 1996 discovery of Moho Marine No. 2, located nine miles (14.5 kilometers) west of Nkossa. Moho-3 is being sidetracked and deepened to explore its original Albian objective.

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 Moho-3 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