press release

Chevron Press Release - Chevron Executes Agreement To Sell Uinta Basin Oil And Gas Assets

VERNAL, UTAH, Sept. 1, 1999 -- Chevron U.S.A. Inc. today announced it has reached a definitive agreement with The Chandler Company to transfer its oil and gas assets in Utah's Uinta Basin to Shenandoah Energy Inc., a new company recently formed by Chandler.

In exchange for its assets, Chevron will receive an equity ownership interest in Shenandoah and an undisclosed amount of cash. Shenandoah will also acquire all of Chandler's stock. The transactions will have an effective date of July 1, 1999, and are expected to close by Nov. 30, 1999, subject to certain conditions and approvals.

"We are delighted with this opportunity to partner with Chandler in a new approach that optimizes the development of these assets," said Peter Robertson, president of Chevron U.S.A. Production Co. "Chevron will retain an interest in the Utah operations while freeing up much of the asset value to invest in growth opportunities elsewhere."

Chevron's assets include those in Red Wash, Wonsits Valley, Gypsum Hills and the Brennan Bottom Unit areas. Total Chevron production in the region averages 2,280 barrels of oil per day and 5.9 million cubic feet of natural gas per day.

Chevron currently employs 36 people in the Uinta Basin. These employees will have the opportunity to compete for jobs in Shenandoah or possibly be reassigned to other Chevron operations.

"We are very proud of our employees' hard work and dedication," said Robertson. "Their commitment has made Chevron's Uinta Basin operation an attractive fit with Chandler and we are confident their success will be enhanced by the newly merged operation."

Updated: September 1999