press release

Unocal, Forcenergy to develop Cook Inlet oil, gas opportunities

Anchorage, Dec. 17, 1996 -- Unocal Corporation today said its Union Oil Company of California subsidiary has entered into an agreement with Forcenergy Inc to further develop Unocal's leasehold position in the Cook Inlet area of south Alaska.

This agreement requires Forcenergy to expend $30 million on lease acquisition, and development and exploratory drilling on programs generated from Unocal's prospect inventory.

The agreement provides that Unocal and Forcenergy will collaborate technical staff in an effort to identify development and exploratory opportunities in and around Unocal's existing Cook Inlet properties and infrastructure. Through the use of Unocal's extensive geological and geophysical data base in Cook Inlet, a significant number of prospects have already been identified. Further evaluation will determine the drilling potential of these prospects.

As the major operator in Cook Inlet, Unocal has almost 40 years of Cook Inlet expertise heading into this venture. "Unocal will draw on its vast experience and infrastructure strength to help facilitate exploration or development activities in Cook Inlet. We are excited about this renewed interest in Cook Inlet," said John Donohue, Unocal's vice president, Agricultural Products. "This agreement provides an opportunity for Unocal to create and realize significant value enhancement of its existing holdings and new potential in Cook Inlet. This reaffirms Unocal's commitment to a long-term presence and growth in Alaska."

Updated: December 1996