press release

Spirit Energy 76 makes twelve oil discoveries in Van Zandt County, Texas

Sugar Land, Texas, Jan. 13, 1998 - Spirit Energy 76, Unocal Corporation's Lower 48 exploration and production business unit, today announced twelve new oil discoveries in Van Zandt County, Texas.

Nine of the wells had a combined initial test rate of 3,800 barrels of oil per day (bopd) and 3.7 million cubic feet per day (mmcfd) of gas from intervals between 4,600 to 5,000 feet. The nine wells are currently producing 1,900 bopd and 3.0 mmcfd of gas.

Spirit Energy 76 holds a 100 percent working interest in these wells. In addition to these nine wells, three other wells are waiting to be completed and approximately twelve new wells are scheduled to be drilled by the end of the second quarter, 1998.

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 year end 1996 reserves of more than 9.8 trillion cubic feet of natural gas equivalent (1.6 billion barrels of oil equivalent) and 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 regarding drilling activities 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