press release

Texaco Press Release - Texaco Announces New Gas Discovery in Southeast Oklahoma

FOR RELEASE: FRIDAY, JUNE 20, 1997

DENVER, June 20 - Texaco North America Production (TNAP) today announced a new natural gas discovery in the Ouachita overthrust trend, Latimer County, Okla.

The Worrell #22-1 was drilled to a total depth of 18,100 feet and completed on May 12, 1997, with a calculated absolute open flow potential of 25 million cubic feet of gas per day (MMCFPD). Initial gas sales commenced on May 14, 1997, at a rate of 7.5 MMCFPD and a flowing tubing pressure of 5,250 pounds per square inch. Subsequently, the sales rate has increased to 8.4 MMCFPD.

Texaco, as operator, and its partner Daesung Energy Resources, is currently evaluating additional potential well locations in the area. Approximately 8,000 net acres are under lease. Two recently acquired 3-D seismic surveys are being used in Texaco's ongoing assessment of the trend.

Commenting on the discovery, Robert S. Lane, Vice President of TNAP's Denver Region, said, "The Ouachita overthrust is a very complex geologic trend in which to explore. To be successful, we are using satellite remote sensing and 3-D seismic technologies to accurately image complex structures that contain promising new gas reservoirs. This discovery, together with additional drilling in the area, will add significant high-value gas reserves."

Texaco owns a 50% interest in the well. Daesung Energy Resources Inc., of Dallas, Texas, owns a 32% interest in the well. Daesung Energy Resources Inc., is a subsidiary of Daesung Group of Seoul, Korea. Daesung is a diversified energy company engaged in a variety of energy exploration, development, and marketing activities.

Updated: June 1997