press release

Texaco Press Release - Texaco Farms Out North Sea Exploration Acreage to Gaz de France


LONDON, June 12 - Texaco today announced the completion of a multiblock farm out of exploration acreage in the UK Central North Sea to Gaz de France. Texaco retains significant equity, and the operatorship where applicable, in the acreage involved.

Through this farm-out, Texaco anticipates additional multi-well drilling activity to take place from 2001 to 2004, funded to an agreed limit in the exploratory phase by Gaz de France, and cost sharing a number of attractive high pressure- high temperature exploratory licenses to the benefit of both partners.

Commenting on the announcement, William Maloney, Texaco's Vice President, New Ventures said, "This deal presents Texaco with exploration opportunities centered around existing producing assets that we operate or have an equity interest in. A successful exploration program may lead to future growth potential of these assets."

The deal includes acreage located near the Elgin Franklin and Britannia field areas and adjacent to the North Sea's earliest high- pressure, high- temperature development, the Texaco operated Erskine field.

Note: 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: drilling and production results, reserve estimates, 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 26, 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: June 2001