press release

Unocal adds new natural gas production from three Texas fields

Sugar Land, Texas, July 31, 1996 -- Unocal Corporation said today its subsidiary, Union Oil Company of California, has brought two recent natural gas discoveries into production and expects a third on production in late September.

"Unocal continues to have success in discovering and producing gas reserves from the Yegua trend, which is a core asset for Unocal in the Gulf of Mexico region," said Jack Schanck, Unocal group vice president for worldwide oil and gas operations. "We have already identified additional promising locations where we plan to conduct further drilling."

The Stovall #1, located in the Bravenec Field in Wharton County, Texas, was brought onto production in May 1996 after testing 4.0 million cubic feet of gas per day through a 12/64-inch choke with flowing tubing pressure of 5,300 pounds per square inch. The well was drilled to a total depth of 10,300 feet in the Yegua trend. The field is currently producing 4.2 million cubic feet of gas per day.

Unocal owns a 100% working interest and is the operator. Energy Development Corporation has a reversionary 25 percent working interest after well payout.

The Louis Broussard Heirs #1 was also drilled in the Yegua formation and had initial flow rates of 4.0 million cubic feet of gas per day and 800 barrels of condensate per day through a 15/64-inch choke with a flowing tubing pressure of 4,537 pounds per square inch. Located in the Pine Island Bayou Field in Jefferson and Hardin Counties, the well is expected to be placed on production in late September.

Unocal owns a 50-percent working interest in the well. Mariner Energy, Inc. (formerly Hardy Oil & Gas USA Inc.) owns the remaining 50-percent and is the operator. Together, Unocal and Mariner have drilled five successful Yegua trend wells. Current Pine Island Bayou Field production is 23.0 million cubic feet of gas per day, 3,900 barrels of condensate per day and 500 barrels of natural gas liquids per day. A facilities expansion underway will allow production rates of 35 million cubic feet of gas per day and 6,500 barrels of liquids per day by year-end.

The Quinn #2, located in the Bobcat Run Field in Orange County, Texas, tested 2.7 million cubic feet of gas per day through a 14/64-inch choke with flowing tubing pressure of 2,600 pounds per square inch. The well was brought onto production in mid-July at a rate of 4.0 million cubic feet of gas per day. The well was drilled to a total depth of 8,250 feet.

Unocal owns a 73.89% working interest in the well and is the operator. Other partners include Greenhill Petroleum Corporation and Atlantia Oil and Gas Corporation. The Bobcat Run Field is currently producing 14.1 million cubic feet of gas per day.

Updated: July 1996