press release

Unocal adds GOM leases in OCS sale

Sugar Land, Texas, March 28, 2001 -- Unocal Corporation (NYSE: UCL) today said its Gulf Region USA and Deepwater USA business units are the apparent high bidders for interests in 7 shelf blocks and 6 deepwater blocks in the Central Gulf of Mexico OCS Lease Sale No. 178 conducted today by the U.S. Minerals Management Service (MMS).

The company exposed a total of $6.5 million, with apparent high bids amounting to approximately $3.4 million (See chart for detailed bid information).

"We approached this lease sale with our eyes on shelf acreage that could yield near-term drillsites with quick turnaround to production, as well as blocks that could add reserves through our longer-term exploratory program," said Ken Butler, vice president for Unocal Gulf Region USA.

Mike Bell, vice president for Unocal Deepwater USA, said that the company pursued a selective strategy of building on its existing deepwater leaseholdings.

Prior to the sale, Unocal was operator for 474 Gulf of Mexico leases. Of that total, 226 exploratory leases are located in deep water, while another 114 exploratory leases are on the shelf. The company also has 134 development leases on the shelf.

The results of Sale 178 will bring Unocal's total portfolio to 487 OCS leases, if all bids are approved by the MMS.

Central Gulf of Mexico Lease Sale No. 178 - March 28, 2001 Apparent High Bids by Unocal

Block (Prospect) Bid Amount ($)
Green Canyon 905 408,325
Walker Ridge 24 351,499
Walker Ridge 100 227,659
Walker Ridge 101 227,659
Walker Ridge 705 254,191
Walker Ridge 749 507,595
East Cameron 119 400,235
East Cameron 212 160,235
East Cameron 260 160,235
Mobile 871 180,235
Mobile 874 210,235
Mobile 906 180,235
West Cameron 465 150,235

Updated: March 2001