press release

Texaco Press Release - Texaco and Agip Confirm Gulf of Mexico Deepwater Discovery

Champlain Discovery Delineation Well Completed

FOR IMMEDIATE RELEASE: WEDNESDAY, JUNE 20, 2001.

WHITE PLAINS, N.Y., June 20 - Texaco, and its partner Agip, have announced the successful delineation of Champlain, a deepwater Gulf of Mexico oil discovery, located in Atwater Valley Block 63 located 160 miles south of New Orleans.

The delineation sidetrack well, Champlain No. 1 - sidetrack 2 - bypass 1, was drilled to a total depth of 25,367 feet on June 4. Initial results indicate the presence of high quality reservoir sands with total net pay of over 400 feet, extending the proven oil accumulation both laterally and downdip. The ultimate size and specific development plan will be determined by further delineation drilling planned for later this year.

"This delineation well has confirmed the significant potential of the Champlain discovery. Together with other recent drilling success, Texaco has strengthened its position in the Gulf of Mexico," said Matt Cabell, Texaco's Vice President of Gulf of Mexico Exploration. "We are pleased that our exploration program is contributing to future production and building Texaco's strong asset base."

Texaco and Agip each hold a 50 percent interest in Atwater Valley Block 63 and in the adjacent Block 64. Agip is the operator of the current sidetrack well, while Texaco is the overall prospect operator for Blocks 63 and 64. The two companies also hold an interest in several other high-potential prospects nearby.

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