press release

Unocal Joins Development of Block B10/32, Gulf of Thailand; Drills Successful Well

BANGKOK, THAILAND, March 11, 1997 -- Unocal Corporation today announced that a unit of its Unocal Thailand, Ltd. subsidiary has signed a supplementary concession agreement with the Thai Ministry of Industry to farm in to Block B10/32 in the Gulf of Thailand. The agreement gives Unocal a 45 percent interest in the block, which is adjacent to the company's main natural gas concession areas in the Gulf of Thailand.

Block B10/32, located about 75 miles offshore southern Thailand, had been held by Statoil Siam Ltd., which retains a 45 percent interest. Mitsui Oil Exploration Co., Ltd. (MOECO) holds the remaining 10 percent.

Unocal will operate Section A, one of three non-contiguous areas in Block B10/32, with Statoil operating the other two sections.

Unocal has already drilled a successful exploratory well, West Dara-1, in Section A, located in the northern portion of the block and immediately west of Unocal's prolific Erawan gas field. The well, spudded after the Thai Cabinet approved Unocal's participation on February 4, encountered 185 feet of gas pay in seven zones. The well registered a flow rate of 10 million cubic feet of gas per day (mmcfd) and 84 barrels of condensate on a 3/4-inch choke.

"This initial result bodes very well for our new partnership in the block. This is a highly gas-prone area and production from Section A could be tied into our Erawan complex," said Brian Marcotte, president of Unocal Thailand. He added that Unocal is currently evaluating initial exploratory information and plans to conduct additional seismic work and drilling over the next three years.

The nine Gulf of Thailand fields operated by Unocal supply Thailand with nearly 1 billion cubic feet of natural gas and 30,000 barrels of condensate per day. These fields are operated under three sales agreements with the Petroleum Authority of Thailand (PTT). Unocal's average interest in the fields is 65 percent. Co-concessionaires include MOECO, PTT Exploration & Production and Amerada Hess.

Unocal recently announced that Pailin, a major field in Block B12/27 covered under a fourth sales agreement, is expected to come onstream in late 1998 and add 165 mmcfd in production. Unocal Thailand, which has a 35 percent working interest in the B12/27 concession block, has been conducting additional delineation drilling which could, if successful, boost production from Pailin to 330 mmcf/d by 2001.

Since late 1996, Unocal has also been conducting exploration activities in two deep-water blocks in the Andaman Sea, offshore Thailand's west coast. Exploratory drilling in these blocks is scheduled to begin late this year.

Updated: March 1997