press release

Unocal Discovers New Gas Field in Gulf of Thailand; Exploration Program Extends Existing Fields

El Segundo, Calif., Nov. 11, 1996 -- Unocal Corporation today said its Unocal Thailand, Ltd., subsidiary had discovered a new natural gas field in the Gulf of Thailand. Unocal added that its exploration program of 11 successful wells also confirmed extensions to the Satun, Platong and Baanpot fields, proved the commerciality of the Pladang field and delineated the Trat field.

"Based on the drilling information from these wells, we expect that these successful wells will increase our gross recoverable natural gas in the Gulf of Thailand by more than 300 billion cubic feet (bcf) from 10 new platform locations," said Gregor Dixon, Unocal Thailand vice president for exploration.

"Using slimhole drilling technology, we averaged only eight days per well for drilling, logging and testing, keeping the average cost below $900,000 per well," Dixon said. "Our ability to drill such low-cost wells enables us to test more exploration prospects in our exploration program."

Dixon noted that the 11 successful wells averaged more than 200 feet of natural gas and condensate pay, 50 feet more than the average of Unocal's exploration wells drilled to date in the Gulf of Thailand.

The discovery well, Plamuk-1, encountered significant natural gas pay which was tested at commercial rates. Further work is planned on the Plamuk field in 1997 to confirm its size and development schedule. The company did not disclose test results on the well.

Three wells in the Unocal exploration program proved the commerciality of the Pladang field and two wells further delineated the Trat field. These fields will now be developed and brought on production under the existing sales contracts. Three other exploration wells extended the commercial production limits of the Satun, Platong and Baanpot fields.

Unocal expects gross production from the nine fields it operates in the Gulf of Thailand to average nearly 990 million cubic feet per day during the fourth quarter 1996, 35 percent above the average gas production rate for the first nine months of the year. Associated condensate production is expected to average about 32,500 b/d.

"The success of our exploration program supports our plans to increase gross production from present contract areas to nearly 1.0 billion cubic feet per day by the second quarter 1997," Dixon said. Unocal has a 65 percent average net interest in the nine gas-condensate fields it operates in the Gulf of Thailand.




                 Unocal Thailand Exploration Successes - 1996

    Well Name                   Data:

    Plamuk-1                  Location: NNW of Surat "A" platform
    (New field discovery)     Plans: Further evaluation; platform installation
                              in 1998

     Plamuk-2                 Location: SW of Surat "A" platform
                              Plans: Confirms discovery; platform installation
                              in 1997-1998

     Pladang-6                Location: 6 km NE of Satun "H" platform
                              Total Gas & Condensate Pay: 244'
                              Plans: Proves commerciality of the Pladang
                              field, platform installation in 1998

     Pladang-7                Location: 7 km SSE of Platong "E"
                              Total Gas & Condensate Pay: 59'
                              Plans: Likely to develop with low cost minimal
                              facilities platform

    Pladang-8                 Location: 4 km ENE of Satun "H"
                              Total Gas & Condensate Pay: 110'
                              Note: Delineates field

    Trat-12                   16 km E of Satun "K"
                              Total Gas & Condensate Pay: 318'
                              Note: Delineates field, first platform scheduled
                              for installation in 1998

    Trat-13                   13 km S of Satun "D"
                              Total Gas & Condensate Pay: 174'
                              Note: Delineates field

    Satun-29                  Location: 6 km SW of Platong "A"
                              Total Gas & Condensate Pay: 330'
                              Note: Proves up area between North and South
                              Satun

    Platong-18                Location 6 km SW of Platong "A"
                              Total Gas & Condensate Pay: 177'
                              Note: Extends Platong field to west and
                              southwest; confirms future platform location

    Baanpot-13                4.5 km NNE of Baanpot "B"
                              Total Gas and Condensate Pay: 184'
                              Note: Extends Baanpot field to north-northeast;
                              confirms future platform location

    Platong-19                Location: 6 km SW of Platong "E"
                              Total Gas & Condensate Pay: 158'
                              Note: Extends Platong field to west and
                              southwest; confirms future platform location

Updated: November 1996