press release

Unocal discovers new gas field in Gulf of Thailand

El Segundo, Calif., Nov. 11, 1998 -- Unocal Corporation today said it had discovered a new natural gas field in the Gulf of Thailand.

The South Gomin field lies in concession block 13, southeast of Unocal's Erawan field and south of the Funan field, which are among the 11 fields in the Gulf of Thailand that are operated by Unocal Thailand, Ltd., a Unocal subsidiary.

The South Gomin-1 discovery well was drilled to a depth of 13,966 feet, encountering at least 269 feet of gas-bearing sand in 16 zones with additional shallower pay not fully evaluated. Three drillstem tests registered a cumulative flow of 41 million cubic feet a day (mmcfd).

"South Gomin-1 has discovered a potentially significant new gas-bearing area. We are also extremely pleased with the reservoir quality throughout this particular discovery," said Neil Smith, vice president of exploration. "The Unocal-operated acreage in the Gulf of Thailand continues to provide new gas reserves after more than 17 years of production."

Based on the information, the gross resource potential of the South Gomin field is estimated at 150 to 280 billion cubic feet (bcf), which needs to be confirmed with additional future drilling. Timing for the development of the field will depend on market demand.

South Gomin is the second new commercial field added in the Gulf of Thailand this year. In September, delineation drilling confirmed the commerciality of the Pakarang gas field in Block 11.

Unocal Thailand (71.25% gross working interest) is the operator of the Block 13 and the South Gomin field for its co-venturers Mitsui Oil Exploration Co., Ltd. (23.75%) and PTT Exploration and Production Public Company Limited (5%).

Unocal is one of the world's largest independent oil and gas exploration and production companies, with major resource development, power plant and pipeline projects in Asia, the U.S. Gulf of Mexico region, and Latin America.

Unocal Thailand has an average 74-percent gross working interest in the concessions in the Gulf of Thailand with its co-venturers. Gross production from the 11 fields is expected to average nearly 1 billion cubic feet a day in 1998, providing nearly two-thirds of the natural gas used by Thailand. The natural gas is used in power generation, the transportation sector, and the petrochemical industry. Natural gas produced by Unocal Thailand yields about one quarter of the electricity consumed in Thailand. Gross condensate production, currently averaging 33,000 b/d, is used as a blending stock in oil refineries, as a chemical solvent, and as a petrochemical feedstock.

Forward-looking statements, including planned future operating and exploration activities, in this news release are based on assumptions concerning market, competitive, regulatory, environmental, operational, and other considerations. Actual results could differ materially.

Updated: November 1998