press release

Texaco Press Release - Texaco Begins Production From Gemini in Deepwater Gulf of Mexico

Gemini Represents $180 Million Investment in Subsea Development

FOR IMMEDIATE RELEASE: TUESDAY, JUNE 8, 1999.

HOUSTON, June 8 Texaco and Chevron announced today that they have begun producing natural gas and condensate from Gemini, a state-of-the-art subsea system of wells, manifold and flowlines located on the bottom of the Gulf of Mexico in 3,400 feet of water.

Gemini's initial flow rates were 77 million cubic feet of natural gas (MMCFD) and 1,500 barrels of condensate per day (BCPD) from one well. These initial rates are expected to peak at daily rates of 150-200 MMCFD and 2,000-3,000 BCPD with two additional wells by year-end. This will make Gemini one of the largest subsea projects currently producing natural gas and condensate in the Gulf.

Gemini is located in Mississippi Canyon Blocks 292 and 247, approximately 90 miles southeast of New Orleans. Texaco Exploration and Production Inc., a subsidiary of Texaco Inc., is the operator of the project with a 60 percent working interest. Chevron U.S.A. Production Company holds a 40 percent working interest.

Projected recoverable reserves for the project are estimated at 250 to 300 billion cubic feet of gas and 3 to 4 million barrels of condensate.

"The first production from this subsea facility ushers in a new deepwater producing era for Texaco," said Robert A. Solberg, President, Commercial Development for Texaco. "The Gemini teams were challenged to overcome an array of technological, equipment and infrastructure issues which they have successfully accomplished in near record time."

The scope of Gemini consisted of the completion of an exploratory well and the drilling of two development wells. Several Gulf Coast contractors provided services for this unique project, including drilling operations, the design, fabrication and installation of processing facilities on an existing host platform, a subsea manifold system and dual gas export flowlines.

Discovered in 1995, Gemini is also one of the first deepwater subsprojects in the Gulf of Mexico. To reach the objective, the companies had to drill through more than 3,000 feet of shallow salt. Design, construction and deployment of the subsea system was accomplished in less than 18 months following project approval by both companies.

Gemini will also contribute to the initial infrastructure in this area of the Mississippi Canyon region where Texaco and Chevron are joint owners of more than 30 leases, strategically positioning the companies to grow production in the deepwater.

Note to Editors: Color graphic of Gemini and technical data are available upon request.

Updated: June 1999