press release

Chevron Gets Go-Ahead To Explore 1.77-Million Acre Tract In Peru

CHEVRON GETS GO-AHEAD TO EXPLORE
1.77-MILLION-ACRE TRACT IN PERU

SAN FRANCISCO, Nov. 8, 1995 -- Chevron Overseas Petroleum (Peru) Limited today signed a license contract with Perupetro S.A. to explore more than 1.77 million acres on Block 52 in the Peruvian highlands.

Chevron's exploration program will include a seismic program and other geologic studies, and is anticipated to start immediately. Following acquisition and interpretation of the geologic and seismic data, determinations regarding drilling will be made.

Block 52 is located 250 miles east of the capital city of Lima and is adjacent to the giant Camisea gas/condensate discoveries. It comprises 718,928 hectares (more than 1.77 million acres), and has had np previous exploration activity.

"We are delighted to be returning to Peru," said Richard Matzke, president of Chevron Overseas Petroleum, "and we are eager to begin exploration in such an exciting area. We feel Block 52 offers excellent potential due to its geologic similarities with and geographic proximity to the prolific Camisea fields," he added.

Chevron's history in Peru dates back to the 1930s when the company conducted geological exploration in the foothills of the Andes. In addition, Chevron operated a refinery in Conchan, Peru, until 1972.

Matzke lauded the Peruvian government's newly revised hydrocarbon laws and noted that they have enhanced the appeal of operating in Peru by offering favorable terms and encouraging foreign investment in the country.

Updated: November 1995