press release

Texaco Press Release - Texaco and Aera Finalize Trade of Selected California Upstream Assets

FOR IMMEDIATE RELEASE: FRIDAY, MARCH 5, 1999.

BAKERSFIELD, Calif., March 5 -- Texaco and Aera Energy LLC (Aera) today announced the closing of an agreement to trade selected producing assets located in California's San Joaquin Valley. Under terms of the agreement, Texaco will exchange its interests in the Belridge, Lost Hills and Coalinga Fields for Aera's interest in the Kern River Field. Terms of the trade are confidential.

"This exchange of assets is a positive move for both Texaco and Aera," said Steve Hadden, Vice President for Texaco Exploration and Production Inc. "This allows us to strengthen our position as the major producer in the Kern River field and enhance the efficiency of our operations."

"The trade makes good sense for both companies," said E.J.(Gene) Voiland, Aera President & Chief Executive Officer. "This transaction allows us to improve overall operational efficiencies by adding assets in fields where we have a significant presence and trading out of a field where we are not a major producer."

Texaco is a leader in the California heavy crude oil production market through its enhanced oil recovery operations and the use of state-of-the-art computer technology. Texaco's California producing assets are located primarily in the Kern County area, with additional assets located in Monterey County and other portions of the San Joaquin Valley.

Aera Energy LLC is California's largest producer of oil and gas. Company headquarters are in Bakersfield and most of its production is centered in Kern County and the San Joaquin Valley. Aera also has oilfield operations in the Los Angeles Basin and in Monterey and Ventura counties.

Updated: March 1999