press release

Texaco Press Release - Texaco Announces Wildcat Gas Discovery Offshore Western Australia

FOR RELEASE: THURSDAY, SEPTEMBER 23, 1999.

HOUSTON, Sept. 23 - Texaco has announced a significant natural gas discovery off the northwest coast of Western Australia within Exploration Permit WA-267-P, operated by West Australian Petroleum Pty. Limited (WAPET).

The wildcat discovery well, Geryon No. 1, was spudded on August 31, in 1,232 meters of water, and reached a total depth of 3,515 meters subsea on September 14. Initial results indicate hydrocarbon gas pay in three high quality reservoir zones with a total net gas pay of 113 meters over a 242 meter gross interval. Geryon No. 1 is the first exploratory well in WA-267-P, an exploration permit awarded to the WAPET joint venture in mid-1997.

The deepwater drilling rig Marine 500 will continue its exploration drilling program until November, and will return to Western Australia early in 2000 to continue drilling in WA-267-P to further explore the potential of this area.

"The Geryon discovery enhances the world-class resource base of the nearby WAPET-operated Gorgon, West Tryal Rocks, Spar, Chrysaor and Dionysus gas fields," said Dr. Bruce S. Appelbaum, President of Texaco Exploration. "These five fields have estimated resources totaling more than 17.5 trillion cubic feet (tcf) of hydrocarbon gas, of which 5.6 tcf is Texaco's share. This discovery could further support our initiatives to commercialize the Gorgon area gas fields through LNG and domestic gas markets."

Texaco leads a domestic gas marketing initiative, announced early this year, aimed at supplying high volume industrial gas users in Western Australia from the Gorgon and West Tryal Rocks fields. In that effort, Texaco serves as marketing agent on behalf of other Gorgon field participants, Chevron, Mobil and Shell.

Texaco Australia Pty Ltd holds a 25 percent interest in WA-267-P and interests ranging from 28.6 per cent to 50 per cent in the other titles in the Gorgon area.. Texaco's co-venturers in WA-267-P are: Chevron Asiatic Limited (25%), Mobil Australia Resources Company Pty Ltd (25%), Shell Development (Australia) Proprietary Limited (12.5%) and BP Exploration (Alpha) Ltd (12.5%). WAPET is the operator for the joint venture.

Updated: September 1999