press release

Unocal completes merger of Permian and San Juan basin assets with Titan to create Pure Resources

Unocal completes merger of Permian and San Juan basin assets with Titan to create Pure Resources

Midland, Texas, May 26, 2000 -- Unocal Corporation (NYSE: UCL) today announced that it has completed the merger of its oil and gas exploration and production assets in the Permian and San Juan basins with Titan Exploration, Inc., to create a new publicly traded company named Pure Resources, Inc.

Pure begins trading on the New York Stock Exchange today under the "PRS" symbol.

The merger was approved overwhelmingly by Titan stockholders at a special meeting on Wednesday, May 24. Titan stockholders will receive 0.4302314 shares of Pure for each share of Titan.

Pure Resources has approximately 50 million common shares outstanding. Unocal holds 65.4 percent, or 32.7 million shares, of the new company. Titan shareholders own 34.6 percent of Pure.

The merger creates one of the largest independent exploration and production companies doing business in its core geographic area. At the January 1, 2000, effective date for the merger, Pure has pro forma combined proved reserves of approximately 1.02 trillion cubic feet of natural-gas-equivalent (NGE), 80 percent of which are proved, developed and producing. The new company has net daily production of approximately 230 million cubic feet of NGE. About sixty percent of this production is natural gas, and 40 percent is oil.

"We are very excited about the creation of this new, entrepreneurial company," said Roger Beach, Unocal chairman and chief executive officer. "Pure has the high-quality assets to provide near-term earnings while at the same time focusing on the growth opportunities presented by the restructuring and consolidation taking place in the industry."

Beach noted that the new company has significant potential to grow through the drillbit and through acquisitions. "By combining Unocal's assets and operating expertise with Titan's technological ability and in-depth knowledge of the region, Pure has what it takes for success in the Permian, one of the world's most prolific basins," he added.

Jack D. Hightower, former chief executive officer of Titan, is chairman and chief executive officer of the new company. Pure Resources is headquartered in Midland, Texas.

Unocal will report the financial and operating results of Pure Resources on a consolidated basis.

Forward-looking statements regarding business and market transactions, cost reductions, and estimates of production and reserve quantities in this news release are based on assumptions concerning operational, market, competitive, regulatory, environmental, and other considerations. Actual results could differ materially as a result of factors discussed in Unocal's and Titan's 1999 Form 10-K reports and their combined proxy statement/prospectus dated April 19,2000, filed with the Securities and Exchange Commission.

Updated: May 2000