press release

Chevron Press Release - Chevron Trades Options For License; Captures Three Blocks In Ireland's Celtic Sea

SAN FRANCISCO, Feb. 21, 1995 -- Chevron Corporation announced today that its subsidiary, Chevron Exploration Europe, has been awarded a license by the government of Ireland to explore for oil and gas in three tracts covering 300 square miles (190,000 acres) in the Celtic Sea off the coast of Ireland. The three tracts, designated Block(s) 56/14, 56/15 and 56/19, were previously held by Chevron under a licensing option. The company decided to apply to the government of Ireland to change its status from an option to an actual license for exploration following encouraging results gathered from a seismic survey conducted in 1994.

"The new exploration areas, in which Chevron holds 100 percent interest, are contiguous and located approximately 100 miles south of Cork, in a section of the Celtic Sea which we feel holds good prospects for hydrocarbon entrapment," said Spencer Winter, Chevron's manager of exploration for the United Kingdom and Ireland. "We are encouraged by the quality of the seismic survey, and expect to begin drilling an exploratory well in the new area this year," he added.

Chevron's new license in Ireland ends its 9-year absence from operations in the Celtic Sea, where another of its subsidiaries, Gulf Oil Ireland, had drilled a number of exploratory wells prior to ceasing exploration activities in 1986.

"We are very pleased to be back in Ireland," said Winter, noting that the company's revived presence there is a result of new perspectives of the geological structures of the Celtic Sea area generated by new, advanced technologies in seismic capability, plus improvements in the licensing terms introduced by the Irish government in 1992. "Chevron's interest in exploring these three new blocks further underscores its commitment to continued investment in the United Kingdom and Ireland," said Winter.

Elsewhere in the United Kingdom, Chevron's activity centers around two North Sea producing oil fields, Ninian and Alba, which are operated by Chevron for itself and its partners. Production from the northern section of Alba currently averages about 89,000 barrels of crude per day. Since the field came onstream in January, 1994, Alba has yielded daily production as high as 97,000 barrels, surpassing initial peak estimates of 70,000 barrels per day. Plans are now being finalized for development of the southern half of Alba. Chevron is also a co-operator in the Britannia oil field, currently under development and expected to come onstream in the fourth quarter of 1998.

Updated: February 1995