press release

Chevron Press Release - Chevron Makes Third Significant Discovery In Angola's Deep-water

Block 14

SAN FRANCISCO, July 8, 1998 -- Chevron Corp. has confirmed another significant discovery of crude oil offshore Angola in waters more than 1,300 feet deep. This is the third discovery in Block 14, which is operated by Chevron. The block is adjacent to the Chevron-operated Block O Concession in Angola's Cabinda Province.

This latest discovery was made by exploratory well 14-9X and has been named Benguela Field. Well 14-9X represents the third significant discovery in the Block, the first two being Kuito (14-2X) and Landana (14-6X).

"We are very excited about and encouraged by our exploration success in Block 14, as well as with the ongoing development of the Kuito Field," said Dick Matzke, a director of Chevron Corp. and president of Chevron Overseas Petroleum Inc. "In 1998, we will continue with the appraisal of both the Landana and Benguela fields in the block," Matzke added.

Mark Puckett, managing director of Chevron's Southern Africa strategic business unit headquartered in Angola's capital of Luanda, added that "preliminary results from this well indicate the possibility of a significant oil accumulation." Further appraisal will be required to confirm the size of the Benguela field. However, three zones were tested in 14-9X, with a combined flow rate of over 20,000 barrels of oil per day. The major producing interval yielded high-quality, 36-degree API gravity crude oil.

Chevron is the operator for Block 14 and holds 31 percent interest; Sociedade Nacional de Combustiveis de Angola (SONANGOL), the Angolan national oil company, Agip Angola, and Total Angola each hold a 20 percent interest. The remaining 9 percent interest is held by Petrogal.

Updated: July 1998