press release

Texaco Press Release - Texaco Enters Into Production Sharing Agreement for Angolan Offshore Block 9

FOR RELEASE: THURSDAY, OCTOBER 8, 1998.

HOUSTON, Oct. 8 -- Texaco and Angola's state owned oil company Sonangol U. E. E, announced today that they have entered into a production sharing agreement for Angolan offshore Block 9. Under terms of the agreement, Texaco will serve as operator with a 40 percent interest.

Block 9 covers 1.2 million acres and is located in the Kwanza Basin, offshore Sumbe, approximately 155 miles south of Luanda. Water depths of the block vary widely from shallow waters contiguous with the shoreline, to 2,000 feet at the deepest point.

Commenting on the announcement, Texaco Worldwide Exploration President, Dr. Bruce S. Appelbaum said, "Angola's offshore oil and gas resources are substantial and we are pleased to expand Texaco's exploration activity to Block 9. We believe this new agreement will further develop our company's long standing presence and commitment to Angola as we collaborate with Sonangol to unlock the significant potential of Angola's oil and gas resources."

Texaco acquired its interest in Block 9 in 1997. A 2-D seismic program was conducted on the block in 1998, and Texaco is evaluating acquiring additional seismic during 1999 with initial drilling tentatively planned for 2000.

Other interest holders in Block 9 are Mobil (35 percent), Energy Africa (15 percent) and Norsk Hydro (10 percent).

Updated: October 1998