press release

Unocal acquires interest in new acreage in East Kalimantan

El Segundo, Calif., Oct. 14, 1996 -- Unocal Corporation said today that its Unocal Indonesia Company subsidiary has signed agreements to acquire a 50 percent working interest and operatorship of the Makassar Strait Production Sharing Contract (PSC) area in the Mahakam Delta area, offshore East Kalimantan, Indonesia.

Unocal acquired the interest in the Makassar Strait PSC from Mobil Makassar Ltd. The PSC currently covers 3,516 square kilometers (868,538 acres). Mobil drilled one well (Perintis-1) in 1994 on the PSC, which tested gas from a non-commercial accumulation.

Under the terms of the agreement, Unocal expects to drill one well on an already identified prospect, at 100 percent Unocal cost, to earn a 50 percent interest in the PSC. Unocal plans to drill the well in late 1996 - early 1997, with possible additional exploratory drilling and seismic surveys. Unocal will operate the PSC effective from the date of the farmin.

The Makassar PSC is located in the deeper water (600-2,000 ft.) area of the prolific Kutei basin. The acreage is adjacent to Unocal's existing PSC, where the company is aggressively exploring with the "Saturation Exploration (SX)" technique.

"This acreage is an excellent opportunity for Unocal." said Timothy C. Lauer, president and managing director of Unocal Indonesia. "Our regional studies show this unexplored area to be highly prospective, and our existing infrastructure and technological innovations enable us to explore very cost effectively."

Unocal Indonesia, under a production sharing contract with Pertamina, the Indonesian national oil company, operates eight fields offshore East Kalimantan. Unocal holds a 100 percent working interest in seven of these fields -- Serang, Sepinggan, Melahin, Kerindingan, Seguni, Pantai and Yakin -- and a 50 percent working interest in the supergiant Attaka field.

Updated: October 1996