press release

Unocal in negotiations to sell Geysers geothermal interest to Calpine

El Segundo, Calif., Jan. 12, 1999 -- Unocal Corporation today said it is in negotiations to sell its working interest in a geothermal steam venture at The Geysers in Northern California to Calpine Corporation.

Unocal subsidiaries hold a 75-percent working interest in the geothermal energy production venture, while Thermal Power Company, a Calpine affiliate, holds the 25-percent working interest in the resource venture.

"To maximize the remaining life of The Geysers requires that the steam production and generating plant operation be brought under a single entity," said Randy Howard, Unocal group vice president, International/Geothermal group. "We have decided that it is in the best interest of our stockholders to capture value from the asset now and reinvest the proceeds into our core exploration and production business and international market to resource opportunities."

Unocal has been focusing on its core oil and gas exploration and production business in the Gulf of Mexico, South and Southeast Asia, Latin America and West Africa. Unocal also is a leading producer of geothermal energy, with major projects in the Philippines and Indonesia.

The sale is contingent on the successful negotiation of a definitive purchase and sales agreement and obtaining necessary consents.

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.

Updated: January 1999