press release

Spirit Energy 76 and Amoco Production Company enter joint venture in Cotton Valley Reef

Sugar Land, Texas, Jan. 22, 1998 -- Spirit Energy 76 and Amoco Production Company have entered into a joint venture agreement for the exploration and development of 22,000 acres located in the prolific Cotton Valley Reef trend of East Texas. The area of interest lies south of the Bear Grass Field in Leon County, Texas, and is contiguous to discoveries reported by Union Pacific Resources and Sonat Exploration.

Amoco has shot 110 square miles of 3-D seismic over the area, and have identified multiple reef prospects and leads. Spirit Energy 76 and Amoco plan to drill at least four wells in 1998, two of which are currently drilling. Amoco will operate the joint venture with Spirit Energy 76 retaining a 37.5 percent working interest in the project.

Spirit Energy 76 employs approximately 1,300 people and operates 300 offshore platforms and approximately 2,700 active wells in 355 fields in the United States.

Unocal is a leading global energy resource and project development company, with major oil and gas exploration and production activities in Asia and the U.S. Gulf of Mexico. The company maintains twin headquarters in California and Malaysia, with major offices in Singapore, Jakarta, Bangkok and Sugar Land, Texas.

Forward-looking statements and estimates regarding drilling activity in this news release are based on assumptions concerning market, competitive, regulatory, environmental, operational and other considerations. Actual results could differ materially.

Updated: January 1998