press release

Chevron Press Release - Chevron Reports New Australia Gas Discovery

SAN FRANCISCO, Dec. 19, 1994 -- A major natural gas discovery off the coast of northwest Australia could significantly help extend the area's already large liquefied natural gas (LNG) exports, Chevron said today.

The Chrysaor-1 new-field discovery, still being evaluated, flanks the North Gorgon No. 2 well, which recently struck large gas accumulations and was tested at the very high combined rate of 175 million cubic feet per day from four zones. North Gorgon No. 2 further delineates the giant Gorgon gas structure discovered several years ago.

Both wells reflect Chevron's aggressive efforts as part of West Australian Petroleum Pty. Ltd. (WAPET), a consortium in which Chevron holds a 28.6 percent interest, said Dick Matzke, president of Chevron Overseas Petroleum Inc. and a vice president of Chevron Corporation.

"Northwest Australia continues to prove itself as an oil and gas province of great importance to Chevron," said Matzke. "These fields hold trillions of cubic feet of gas and could ultimately be as big as North Rankin."

The giant North Rankin field feeds the massive North West Shelf Project, in which Chevron holds a 16.7 percent interest. The project's offshore gas is piped to an onshore plant, chilled-down to an extremely cold liquid (LNG) then shipped in special tankers to industrial and utility customers in Japan.

"Fields like Chrysaor and Gorgon -- just 150 kilometers from North Rankin -- eventually could help supply the long-term needs of the rapidly growing Asian LNG market," said Matzke.

In addition, Chevron has recently participated in new exploration and development off northwest Australia through the North West Shelf Project consortium. Flanking North Rankin are two new fields which will start producing in 1995: Goodwyn, expected to yield about 900 million cubic feet of gas and 80,000 barrels of condensate per day; and Wanaea/Cossack, expected to produce about 115,000 barrels of oil per day.

Chevron Overseas Petroleum, based in San Ramon, Calif., manages most of Chevron's exploration and production outside the United States and is a subsidiary of Chevron Corporation, a major international oil company based in San Francisco.

Updated: December 1994