press release

Texaco Press Release - Texaco Announces New Gas Discoveries Offshore Australia

Results Of The Iago and Io Wells Add to Texaco's Significant Offshore Australia Gas Assets

FOR RELEASE: THURSDAY, FEBRUARY 1, 2001

HOUSTON, Feb. 1 - Texaco today announced two new gas discoveries in the Northern Carnarvon Basin, offshore Western Australia by joint ventures comprising Texaco, Chevron, ExxonMobil, Shell and BP.

The Iago-1 well, located in Exploration Permit WA-25-P and the Io-1 well in Exploration Permit WA-267-P follow successful wildcat discoveries Geryon-1 (1999), Orthrus-1 (1999), Urania-1 (2000), Maenad-1 (2000) and Jansz-1 (2000) made by Texaco and its partners in the same area adjacent to the giant Gorgon gas field.

Commenting on the announcement Dr. Bruce S. Appelbaum, President of Exploration and New Ventures for Texaco said, "These discoveries add to the resources of the greater Gorgon gas fields and to the potential viability of a future commercial project off the coast of Australia. Iago-1and Io-1 also demonstrate Texaco's commitment to a strategy of growing our resource base by building a portfolio dominated by large, long-life projects."

The Iago-1 well was drilled to a total depth of 11,100 feet in a water depth of 387 feet. Wireline logs and formation tests have been run and indicate that a hydrocarbon column has been intersected in the Triassic Mungaroo Formation primary objective. The well was plugged and abandoned as a gas discovery on January 3rd.

The Io-1 well was drilled to a total depth of 9,941 feet in a water depth of 4,436 feet. The well was plugged and abandoned as a gas discovery on January 14th.

Both wells were drilled by the Marine 500 which is a 'fit for purpose' deepwater drilling rig capable of operating in water depths up to 5,000 feet.

Texaco Australia Pty Ltd's interests in the WA-25-P and WA-267-P joint ventures are 28.6 percent and 25 percent respectively. The other participants are Chevron Australia Pty Ltd (Operator), Mobil Australia Resources Company Pty Ltd and Shell Development (Australia) Pty Limited. BP Exploration (Alpha) Ltd is a participant in WA-267-P only.

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: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, 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 condition. 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 30, 2000, 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: February 2001