press release

Chevron Press Release - Chevron, Partners, Report Two-Pool Discovery

SAN FRANCISCO, March 21, 1996 -- Chevron and five other member companies of the North West Shelf Consortium today announced a discovery of crude oil and natural gas approximately 80 miles (130 kilometers) off the northwestern coast of Australia.

The discovery well, designated Lambert-2, was drilled in close proximity to the Wanaea and Cossack oil fields, two of the consortium's established producing fields on Australia's Northwest Shelf. Drilled in 410 feet (128 meters) of water, Lambert-2 delineated two Jurassic hydrocarbon reservoirs, encountering 121 feet of oil-bearing sands at an interval between 10,053 and 10,174 feet (3,064 and 3,101 meters), and a second reservoir which encountered 413 feet of natural gas at a level below 12,104 feet (3,689 meters).

Lambert-2 tested at a stabilized rate of 6,259 barrels per day of 48-API-degree crude oil through a 36/64-inch choke, with flowing tubing head pressure of 1,252 psi.

"Lambert-2 provided us with a bonus," said John Gass, managing director for Chevron Asiatic in Melbourne. "In drilling Lambert-2, it was our intention to further appraise a small oil discovery made in the mid-1970s when we drilled Lambert-1. To our delight, not only did we 'appraise' the initial discovery, but also discovered two brand-new hydrocarbon pools which are structurally separate from that first discovered by Lambert-1," said Gass. He said the new field would be named at a later date.

"Given its proximity (9 miles; 14 kilometers) to the Wanaea and Cossack oil fields, we will be able to develop this new discovery at relatively low cost through sub-sea completions produced to the FPSO Cossack Pioneer, the floating production, storage and offloading vessel," said Gass.

Gass said that while further drilling would be required to determine the size of the discovery, the consortium is optimistic for early production start-up -- possibly as soon as first quarter, 1997.

Updated: March 1996