press release

Chevron Press Release - Chevron Drills World Record Deepwater Well

Glomar Explorer

NEW ORLEANS, Aug. 28, 1998 -- Chevron U.S.A. Production Co. (operator) and its joint-venture partners -- Shell Deepwater Development Inc., EEX Corp. and Enterprise Oil Gulf of Mexico Inc. -- set a new water-depth world record of 7,718 feet as they began drilling their initial exploratory test well in the Gulf of Mexicos Atwater Valley Block 118, about 175 miles southeast of New Orleans.

The Chevron-led team anticipates the well, designated Atwater Valley 118 #1, will reach target depth of 15,471 feet below the seabed in the fourth quarter of this year.

The fabled Glomar Explorer -- initially built for U.S. intelligence work -- is drilling the record-breaking well. The drill ship arrived on location and began operations Aug. 9, 1998. With a Chevron/Texaco five-year contract in hand, Global Marine, owner of the Explorer, outfitted the ship with $200-million worth of state-of-the-art drilling and dynamic-positioning technology. Over the next five years, Chevron and Texaco will alternate into the operator position as they go forward with plans to drill 20 deepwater wells in the Gulf of Mexico.

The biggest and best opportunities remaining in the Gulf of Mexico are water depths reachable only by drill ships, said Andy Hardiman, Chevrons vice president for the Gulf of Mexico Deepwater Business Unit. The Explorer and Chevrons second drill ship, the Transocean Deep Seas (100 percent owned by Chevron, to be delivered in the year 2000) will enable Chevron to evaluate the huge potential of its 80 ultra-deepwater prospects.

We have great prospects ... and the rigs that can drill them, noted Hardiman, who added that Chevron will be entertaining proposals from potential partners over the next few months to participate in 12 wells over the next two years.

Notes to editors:

Participants in the Atwater Valley 118 #1 well are:
	Chevron U.S.A. Production Co. (operator)  --  37.5  percent
	Shell Deepwater Development Inc.      --  37.5  percent
	EEX Corp.                             --  12.5  percent
	Enterprise Oil Gulf of Mexico Inc.    --  12.5  percent	
	Participants in the lease of the Glomar Explorer are:
Chevron U.S.A. Production Co. (operator)  --  50  percent
	Texaco Exploration & Production Inc.  --  50  percent

Updated: August 1998