press release

Texaco Press Release - Texaco and BG Announce Starfish-1X Gas Discovery Offshore Trinidad

FOR RELEASE: WEDNESDAY, DECEMBER 2, 1998.

HOUSTON, Dec. 2 - Texaco and BG plc today announced a natural gas discovery on Blocks E and 5a in the East Coast Marine Area, offshore Trinidad.

The discovery well, Starfish-1X, was drilled in a water depth of 427 feet and is located 7.5 miles northwest of the Dolphin Field. Starfish-1X encountered 501 feet of net gas pay in four zones. The well tested at an intentionally constrained rate of 16.2 million cubic feet of gas per day (MMCFPD) on a 32/64-inch choke from the upper zone.

Frank Chapman, BG plc Executive Director responsible for Exploration and Production, said, "This continues our successful exploration campaign off the East Coast. The location of this discovery in the vicinity of the Dolphin infrastructure provides an excellent opportunity to market and develop these reserves rapidly. Trinidad and Tobago is an important country for BG, and one in which we have already created considerable growth and success."

Dr. Bruce S. Appelbaum, President of Texaco Exploration, said, "Starfish-1X represents the type of strategic exploration opportunity Texaco is pursuing to achieve continued growth. The successful results of this drilling campaign, coupled with multiple market opportunities for natural gas in Trinidad, positions Texaco to capitalize on the growth potential of Trinidad's commercial and industrial energy needs."

Starfish-1X is operated by BG on behalf of the 50/50 Texaco/BG venture. Blocks E and 5a are located approximately 56 miles off the East Coast of Trinidad in water depths ranging from 300 to 1,300 feet. The adjacent Dolphin gas field, in production since 1996 and operated by BG on behalf of Texaco and BG, currently produces 170 MMCFPD for sale to the National Gas Company of Trinidad & Tobago.

This is the second discovery this year by the Texaco/BG venture, and the fifth consecutive successful well operated by BG in Trinidad. In August of this year the companies announced a significant natural gas and condensate discovery in Block 5a in the same East Coast Marine Area. The discovery well Dolphin Deep-1 encountered 546 feet of net gas pay in three zones and tested at a rate of 36MMCFPD and 430 barrels of condensate per day.

The joint venture partners for Blocks E are British Gas Trinidad and Tobago Limited, a wholly owned subsidiary of BG plc, and Texaco Trinidad Inc., a wholly-owned subsidiary of Texaco Overseas Holdings Inc.. For Block 5a, the joint venture partners are BG Exploration and Production Limited, also a wholly owned subsidiary of BG plc, and Texaco Trinidad Inc.

Updated: December 1998