press release

Unocal completes Andaman Sea exploration drilling commitment

El Segundo, Calif., Dec. 22, 1997 - Unocal Corporation today said its Unocal Andaman, Ltd., subsidiary has completed the exploration drilling commitment on Blocks W8/38 and W9/39 offshore Thailand in the Andaman Sea.

The five-well drilling program did not encounter commercial quantities of hydrocarbons.

Unocal said the exploration program thoroughly and efficiently evaluated the hydrocarbon potential of the blocks in the fastest possible time by utilizing slim-hole drilling and innovative logging techniques. The company is now evaluating the data to determine further action.

The five wells were drilled in water depths ranging from 1,670 to 3,480 feet, with a total well depth of up to 10,340 feet.

Unocal will record net aftertax dry hole costs in the fourth quarter 1997 of $9 million related to the Andaman Sea program.

Unocal and its co-venturers were awarded the petroleum concession agreement on the two blocks in 1996. Unocal Andaman has a 46-2/3 percent working interest; Total Oil and Gas Nederlands B.V. holds 33-1/3 percent; and Statoil Siam, Ltd., holds 20 percent.

Updated: December 1997