press release

Chevron Press Release - Positive Results Prompt Additional Appraisal Wells

NEW ORLEANS, Feb. 8, 1999 -- An appraisal well for Chevron U.S.A. Production Co. and Broken Hill Proprietary Company Ltd.'s Typhoon deepwater exploration project recently yielded positive results, prompting the joint venture partners to plan additional appraisal drilling in the Gulf of Mexico's Green Canyon area.

Operations were suspended on Green Canyon 237 #1 after the well penetrated 310 net feet of oil over several horizons. The well is 100 miles off the Louisiana coast in 2,000 feet of water and is a follow-up to the project's first exploration well at Green Canyon 236. GC 236 #1, which is three miles to the west of GC 237 #1, penetrated 130 net feet of oil on a separate fault block drilled in 1998. An additional appraisal well, GC 237 #2, is in progress.

Chevron and BHP each own a 50 percent interest in the joint venture, with Chevron serving as operator. A joint project team of Chevron and BHP experts will be in place by the end of the first quarter. The partnership plans to drill two or three additional appraisal wells in 1999.

Note to Editors:

Typhoon Partners are:

Chevron U.S.A. Production Co. (operator) -- 50 percent
Broken Hill Proprietary Company Ltd. -- 50 percent

If developed, Typhoon will be Chevron U.S.A. Production Co.'s third deepwater development in the Gulf of Mexico.

Genesis, which Chevron operates with a 57 percent stake, began producing oil in water 2,600 feet deep, Feb. 1, 1999. Gemini, in which Chevron holds a 40 percent interest with operator Texaco, is expected to begin production later this year. Genesis and Gemini are expected to reach peak production in 2001, making Chevron's working interest production from deepwater approximately 50,000 barrels of oil or equivalent gas per day.

The Green Canyon area is an important component of BHP Petroleum's deepwater exploration acreage in the Gulf of Mexico. BHP has an equity interest in 25 blocks in the northern and central Green Canyon area, in water depths ranging from 1,200 feet to 4,000 feet. The area also contains Green Canyon 18 and Green Canyon 60, two Mobil-operated producing assets in which BHP has a 25 percent and 45 percent working interests respectively.

Updated: February 1999