press release

Texaco Press Release - BP and Texaco Announce New Deepwater Gulf of Mexico Oil Discovery


HOUSTON, June 20 - BP and Texaco today announced an oil discovery in approximately 7,000 feet of water in the Mississippi Canyon area of the Gulf of Mexico. The discovery well was drilled by BP (77.5%) on behalf of itself and partner Texaco (22.5%) on a prospect called Blind Faith. The well was drilled to a total depth exceeding 25,000 feet from the water line. Blind Faith was the first well drilled by the dynamically positioned semi submersible drilling rig Ocean Confidence, owned by Diamond Offshore Drilling Company.

The discovery was made on Mississippi Canyon Block 696, approximately 175 miles Southeast of New Orleans. The reservoir covers parts of two blocks, MC 696 and 695, some 20 miles East of BP's Crazy Horse discovery, the largest field ever discovered in the Gulf of Mexico.

Note: This press release contains a number of forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements made concerning Texaco's expected performance and financial results in future periods are based upon Texaco's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

The forward-looking statements are subject to risk factors associated with oil, gas, power, chemicals, coal and renewables businesses. It is believed that the expectations reflected in these statements are reasonable, but may be affected that by a variety of variables which could cause actual results or trends to differ materially, including, but not limited to: drilling and production results, reserve estimates, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates, and worldwide and industry economic conditions. In addition, you are encouraged to review Texaco's latest reports filed with the SEC, including Texaco's Annual Report on Form 10-K filed with the SEC on March 26, 2001, which describes a number of additional risks and uncertainties that could cause actual results to vary materially from those listed in the forward-looking statements made in this press release.

Updated: June 2001