press release

Chevron Press Release - Chevron San Jorge Purchases New Properties In The Rio Negro Province

Spanish version (En Espaol)

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

BUENOS AIRES, May 9, 2000 -- Chevron San Jorge S.A., headquartered in Buenos Aires, Argentina, and a wholly owned subsidiary of Chevron Corporation, announced today that it has reached an agreement with Alberta Energy Company Argentina S.A., a wholly owned subsidiary of Alberta Energy Company Ltd., to purchase all of the latter's interests in four properties in the Ro Negro Province of Argentina.

The properties include two exploration permits, CNQ 27A and CNQ 31, as well as two production concessions, inclusive of their producing fields, Puesto Prado and Puesto Flores/Estancia Vieja. Current production from these fields is 1,200 barrels per day.

Alberta Energy Company Argentina S.A. owns 100 percent of the interest in these properties, and the sale will be effective upon approval by the appropriate governmental authorities of Argentina.

"Chevron is pleased to expand our presence in Argentina's upstream sector," said David Krattebol, president of Chevron San Jorge. "We are optimistic that this acquisition will impact the quality of our portfolio in the region in a favorable way," added Krattebol.

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, accounting for 9.7 percent of the total oil production in the country. Chevron San Jorge's major producing properties are in the Neuquen and Austral Basins.

The acquisition of the Rio Negro province blocks aligns with Chevron's strategy of growth in its international exploration and production business. Chevron entered Argentina upstream sector in September 1999, by obtaining 100 percent of Petrolera Argentina San Jorge.

Updated: May 2000