press release

ChevronTexaco Announces Sale of Western Canada Assets

SAN RAMON, Calif., May 25, 2004 -- ChevronTexaco Corp. today announced that its North America Exploration and Production Co. has sold 13 producing fields in western Canada to Acclaim Energy Trust and Enerplus Resources Fund for approximately $800 million. The company expects to record a significant gain to income upon close of the sale, which is anticipated to occur at the end of the second quarter or during the third quarter of this year.

The transaction includes the sale of oil and gas producing properties in the Northwest Territories, British Columbia, Alberta and Manitoba.

"We're rationalizing our upstream portfolio to strengthen our competitive position by selling non-strategic assets and retaining those fields that represent long-term value for ChevronTexaco," said Vice Chairman Peter Robertson. "Our strategy in North America is to streamline the portfolio to include approximately 400 core fields that account for the vast majority of current production and cash flows."

ChevronTexaco announced last year that it was evaluating opportunities to divest certain Canadian producing properties to improve performance of its North America exploration and production portfolio. The company recently announced the sale of its EnerPro Midstream Co. assets in Alberta.

"These assets have played a significant role in our history in Canada for the past 65 years," said Alex Archila, president of Chevron Canada Resources. "While they have been a profitable part of our portfolio for many years, the combination of current market conditions and the size of the assets relative to our portfolio makes this an ideal time for a divestiture. This sale will allow the organization to focus its efforts on our new growth areas in Canada."

The company's portfolio optimization program does not affect strategically significant Canadian assets, which include: the Athabasca Oil Sands Project; Mackenzie Delta gas, Canadian east coast exploration, development and production activities; or the company's refining and marketing operations.

Currently celebrating its 125th anniversary, ChevronTexaco is the second-largest U.S.-based energy company and the fifth largest in the world, based on market capitalization. More than 50,000 ChevronTexaco employees work in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and marketing and distributing fuels and other energy products. ChevronTexaco is based in San Ramon, Calif.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.

Some of the items discussed in this press release are forward-looking statements about the sale of 13 producing fields in western Canada, the sale of EnerPro Midstream Co. and the company's North American crude oil and natural gas asset portfolio optimization strategy. The statements are based upon management's current expectations, estimates, and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially include the ability of the company to divest non-strategic assets and realign business units according to plan, failure of the sale of 13 producing fields in western Canada or the sale of EnerPro Midstream Co. to close according to expectations, and general economic conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of the press release. Unless legally required, ChevronTexaco undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Updated: May 2004