press release

Texaco Press Release - Texaco Announces 1998 Reserve Replacement

Reserve Base Climbs To Highest Level Since Mid-1980s


WHITE PLAINS, N.Y., Feb. 1 -- Texaco announced today that it replaced 166 percent of its 1998 worldwide combined oil and gas production, excluding purchases and sales.

Texaco's proved oil and gas reserves increased eight percent during 1998 to nearly 4.7 billion barrels of oil equivalent (BOE), the largest proved reserve base for the company since 1985. These reserves are comprised of 3.6 billion barrels of liquids and 6.5 trillion cubic feet of natural gas. Worldwide finding and development costs in 1998 were $3.45 per BOE, nine percent lower than last year.

Worldwide reserve replacement over the past three years averaged 150 percent with finding and development costs of $3.91 per BOE. On a five-year basis from 1994 to 1998, overall reserve replacement averaged 138 percent with finding and development costs of $3.75 per BOE.

Texaco Chairman and Chief Executive Officer Peter I. Bijur said, "This strong reserve replacement performance builds on the achievements of 1997. During the past two years, Texaco's worldwide upstream team has demonstrated considerable success in growing both U.S. and international reserves, while further reducing finding and development costs."

Texaco's proved reserve to current production ratio remains at 9.4 years. Excluding purchases and sales, U.S. and international reserve replacement ratios in 1998 were 144 percent and 191 percent respectively with finding and development costs of $4.41 per BOE in the U.S. and $2.64 per BOE internationally.

In 1998, 67 percent of the reserve replacements came from new fields, new sands, extensions and enhanced recovery operations, primarily in the U.S. Gulf of Mexico, California, North Sea, Indonesia and offshore China. Significant upward reserve revisions were recognized in the U.S. Gulf of Mexico, Indonesia and the Partitioned Neutral Zone.


(Including Equity in P.T. Caltex Pacific Indonesia)

	                                      Production               Production
	                	              Replacement %            Replacement %
	                  Net Proved	      (Excluding purchases     (Including purchases
	                  Reserves	      and sales)               and sales)
Worldwide Combined
Liquids and Natural Gas
    1998                  4,659	              166%                     171%
    1997                  4,307	              167%                     233%
    1996                  3,700	              113%                     106%

United States
    Liquids               1,824               161%                     136%
    Natural Gas	          4,105               119%                     113%

    Combined              2,508               144%                     127%

    Liquids               1,748               215%                     228%
    Natural Gas	          2,413	               76%                     178%

    Combined              2,151               191%                     219%

United States
    Liquids               1,767               122%                     407%
    Natural Gas           4,022               144%                     146%

    Combined              2,437               132%                     296%

    Liquids               1,500               194%                     170%
    Natural Gas           2,220               309%                      87%

    Combined              1,870               212%                     155%

Estimated net proved developed and undeveloped reserves in millions of barrels of liquids and billions of cubic feet of natural gas. Combined amounts are in millions of barrels of oil equivalent, with natural gas converted to its oil equivalent at 6,000 cubic feet per barrel.

Updated: February 1999