press release

Unocal announces discovery of third major gas field in Bangladesh

Sugar Land, Texas, Dec. 16, 1999 - Unocal Corporation today announced the discovery of the Moulavi Bazar gas field in Bangladesh. This is Unocal's third major gas field discovered in Bangladesh. The Moulavi Bazar gas field is in block 14.

Unocal and its wholly owned subsidiaries have previously announced discoveries of significant gas resources at the Jalalabad gas field, located in block 13, and the Bibiyana gas field, located in block 12.

Two wells have been drilled and completed at Moulavi Bazar. The Moulavi Bazar #2 (MB #2) was drilled to a total depth of 11,512 feet (3,510 meters). MB #2 encountered 98 feet (30 meters) of gas-bearing sands in two zones between 7,074 feet and 7,225 feet (2,157 and 2,203 meters). On test, the wellhead flowed dry gas at a rate of up to 30 million cubic feet per day (mmcfd) from the upper zone and 23 mmcfd from the lower zone.

A delineation well, the Moulavi Bazar # 3 (MB #3), encountered about 101 feet (31 meters) of gas-bearing sand over an interval of 216 feet (66 meters). MB #3 lies on a vast subsurface geologic anticlinal structure spanning 8 miles (13 kilometers) in length north to south, and an east to west width of 1.24 miles (2 kilometers). The well was directionally drilled to a total depth of 7,872 feet (2,400 meters).

The MB #3 is the first well in Bangladesh completed as a "monobore" well design, a design first developed in the company's successful Thailand and Indonesia operations. The well drilled to total depth in a record time of eight days, the shortest time of any well drilled in Bangladesh. The total cost of MB #3 was less than $2.6 million.

"Our broad-based drilling capabilities allow Unocal to drill more wells for the lowest possible cost, while maximizing the flow capacity of the wells," said David Watkins, vice president of operations, Unocal Bangladesh, Ltd. The MB #3 well will be tested at a later date when the test equipment becomes available.

"This Moulavi Bazar gas field discovery will contribute significantly to the natural gas resource base of Bangladesh," said Terry Budden, president and managing director of Unocal Bangladesh, Ltd. "In addition to supplying gas for power generation, natural gas development can be a powerful source of new jobs and improved business opportunities throughout the country".

Unocal began production from the Jalalabad gas field in February 1999. The field contains an estimated 1.6 trillion cubic feet of gas-in-place. Current production of 60 to 100 million cubic feet of gas per day supplies approximately 12 percent of the country's gas demand. The Bibiyana field in Block 12, a world-class natural gas resource discovered in 1998, contains an estimated 3 to 5 trillion cubic feet of gas-in-place and is currently under appraisal by Unocal.

Forward looking statements and estimates regarding future exploration and production activities and resource potential in this news release are based on assumptions about operational, market, competitive, regulatory, environmental, and other considerations. Actual results could differ materially as a result of factors discussed in Unocal's 1998 Form 10-K report filed with the U.S. Securities and Exchange Commission.

Updated: December 1999