press release

Chevron Press Release - Chevron San Jorge Discovers New Oil Field In Rio Negro Province

This is news concerning Chevron but issued by a Chevron subsidiary, Chevron San Jorge S.A, and archived here for record purpose.

BUENOS AIRES, May 18, 2000 -- Chevron San Jorge S.A., a wholly owned subsidiary of Chevron Corp., announced today the discovery of a new oil field in its Río Negro Norte block in the Argentine Province of Río Negro.

El Solitario Sur x-1 discovery well, located approximately six miles east of the Company's Loma Negra oil field, was drilled to a total depth of 8,980 feet and found multiple productive sandstone reservoirs in two separate geologic formations.

Oil-bearing intervals in the Lower Jurassic Pre-Cuyo Group were found between depths of 8,638 to 8,695 feet and tested 220 barrels per day of 18-degree API gravity crude oil. A second series of oil-bearing intervals was found in the Middle Jurassic Punta Rosada Formation at depths between 7,682 to 7,705 feet, and again at depths between 7,729 to 7,767 feet, testing 28.5-degree API gravity crude at the rate of 283 barrels per day.

This new-field discovery marks the ninth discovery on the Rio Negro Norte block since the Loma Negra Field was discovered in early 1997.

"This discovery supports Chevron San Jorge's efforts to enhance the production of the Argentine oil sector, and extends the production potential of the Loma Negra area," said Leonardo Legarreta, Chevron San Jorge's exploration manager. He added that several additional prospects remain to be tested in the Loma Negra Complex -- three of them this year and others in 2001.

"We expect to begin immediate production from the new discovery through the use of the early production facilities at the site and by using the treatment facilities at the Loma Negra Field," Legarreta said. Current total production from the Loma Negra complex is approximately 18,900 barrels of oil per day.

Chevron San Jorge is one of the top producers in Argentina with (gross) operated daily production of approximately 78,000 barrels of oil and 40 million cubic feet of gas - which accounts for 9.75 percent of the total oil production in Argentina.

Chevron San Jorge is the operator for the Loma Negra consortium, and holds a 37.5-percent working interest. The partners are Repsol YPF (35 percent), the International Finance Corporation (15 percent), and Metro Holding (12.5 percent).

Updated: May 2000