press release

Texaco Press Release - Saudi Arabian Texaco and Kuwait Oil Company Announce Discovery

FOR RELEASE: MONDAY, OCTOBER 5, 1998.

LONDON, U.K., October 5 - Saudi Arabian Texaco Inc. (SAT) and Kuwait Oil Company (KOC) today announced an oil and gas discovery on the Humma prospect in the Partitioned Neutral Zone (PNZ) between Kuwait and Saudi Arabia.

The discovery well, Humma #4, is jointly operated by SAT and KOC on behalf of the Kingdom of Saudi Arabia and the State of Kuwait respectively, and is located approximately 25 kilometres (16 miles) south-west of the companies' Wafra field. The well was drilled to a total depth of 10,180ft and encountered 726 feet of gross pay in five zones. During well-testing, 32 degree API crude oil and sweet gas flowed at a combined rate of 3,400 barrels per day, with flowing pressure of up to 1,649 pounds per square inch. Typically, PNZ crude is significantly heavier, at 18-23 degree API.

Further seismic and drilling work will be carried out on the prospect, before a decision on possible future development is made during 1999.

Updated: October 1998