press release

Unocal announces successful appraisal well offshore Myanmar

El Segundo, Calif., March 28, 1996 -- Unocal Corporation today announced that it has successfully completed and tested an appraisal well in the Badamyar sands structure adjacent to the Yadana field in the Andaman Sea offshore Myanmar.

The Badamyar-1 (BDM-1) well, drilled to a total depth of 3,676 feet, encountered approximately 170 feet of gas-bearing pay in the Upper Miocene Badamyar sands overlaying the main Yadana reservoir. Three drill stem tests yielded a combined cumulative flow rate of 32 million cubic feet per day (mmcf/d) on a 40/64" choke.

BDM-1 is the first well drilled to specifically appraise the Badamyar sands structure, which is also known as "Padamya" meaning ruby. It is the second well of a six-well 1996 exploration drilling campaign being conducted on Moattama blocks 5 and 6 by a consortium led by Total, SA., operator of the project.

Earlier this month, the consortium announced the discovery of the Sein field, located about six miles (10km) south of the Yadana field. Both the Sein field and Badamyar structure could easily be produced through a nearby Yadana platform complex that is under development.

Co-venturers participating in the consortium include: Unocal Myanmar Offshore Co., Ltd., a subsidiary of Unocal Corporation (28.26%); Total (31.24%); Thailand's PTTEP International Limited (25.5%); and the Myanma Oil and Gas Enterprise (15%).

In February 1995, the Yadana project co-venturers signed a 30-year gas sales contract and a pipeline agreement calling for deliveries of 525 mmcf/d to Thailand beginning in mid-1998. Most of the Yadana natural gas produced will be shipped via a 36-inch, 416-mile (669km) pipeline to a 2,800-megawatt electric power plant southwest of Bangkok. A separate sales agreement calls for 125 mmcf/d of gas to be supplied to Myanmar for domestic use.

Updated: March 1996