press release

Chevron Press Release - First Gas Flows From Chevron's Fort Liard K-29 Well

This is news concerning Chevron but issued by a Chevron subsidiary, Chevron Canada Resources, and archived here for record purposes.

CALGARY, May 1, 2000 -- Chevron Canada Resources and partners today announced that first production of natural gas flowed from its K-29 discovery well located 29km northwest of the Hamlet of Fort Liard, Northwest Territories (NWT) on April 29, 2000. Consistent with good "start-up" operating practices, Chevron plans to begin production at 35 million cubic feet per day and ramp-up production within about 10 days to a planned rate of 75 million cubic feet per day.

A newly constructed pipeline will bring this natural gas to the existing pipeline at Pointed Mountain, NWT and into Westcoast Energy's gas processing facilities at Fort Nelson, British Columbia where it will enter the main sales gas system.

Production from Chevron's second well, M-25, drilled about 8km south of K-29 this winter is estimated to begin producing by November/December, 2000. M-25 is expected to produce at about 75 million cubic feet per day and will be tied-in to the K-29 pipeline system.

Production from K-29 follows 22 months of working closely with the community of Fort Liard, the governments of Canada, the NWT and their agencies. During this period, Chevron conducted an extensive seismic program, drilled two gas wells and one water injection well, filed a comprehensive development plan, participated in an environmental review with the new Mackenzie Valley Environmental Impact Review Board and built a 37.4 km pipeline on time and on budget.

Jim Simpson, President of Chevron Canada Resources said, "The relationship between Chevron and the community of Fort Liard has been very productive and beneficial. Fort Liard competitively positioned its businesses to take advantage of economic opportunities and demonstrated operational excellence in meeting the project's needs." Simpson added, "Through leadership and involvement, Fort Liard has demonstrated how partnerships with industry and local communities can work for the mutual benefit of everyone."

Interests in the K-29 and M-25 wells include Chevron as operator - 43.4318%; Purcell Energy Ltd.- 24%; Berkley Petroleum Corp. - 21%; Anderson Resources - 4.1%; Paramount Resources Ltd.- 2.7602%; Ranger Oil Limited -1.197%; CanNat Resources Inc. - 0.90736%; Numac Energy Inc.- 0.82%; AEC Oil & Gas - 0.336%; Talisman Energy Inc. - 0.21% and other interests -1.23764%.

Updated: May 2000