press release

Unocal announces new Myanmar gas discovery

El Segundo, Calif., March 5, 1996 -- Unocal Corporation today announced the discovery of a potentially significant new> gas field located about six miles (10km) south of the previously discovered Yadana field in the Andaman Sea offshore Myanmar.

Further studies are under way to prove the commerciality of the offshore Myanmar discovery. The field could easily be produced through the Yadana platform complex.

The Moattama 5A-1 exploratory well, drilled in comparable horizons to the Yadana field, was drilled to a total depth of 5,074 feet and two drill stem tests yielded a cumulative flow rate of 26 million cubic feet per day (mmcf/d) from 180 feet of gas-bearing pay. The new field has been named "Sein," meaning "diamond".

The exploratory well is the first well completed under the six-well 1996 exploration drilling campaign being conducted on Moattama blocks 5 and 6 by a consortium led by Total, SA., operator of the project.

Co-venturers participating in the consortium include: Unocal Myanmar Offshore Co., Ltd., a subsidiary of Unocal Corporation (28.26%); Total (31.24% interest); Thailand's PTTEP International Limited (25.5%); and the Myanma Oil and Gas Enterprise (15%).

In February 1995, the co-venturers signed a 30-year gas sales contract and pipeline agreement calling for deliveries of 525 mmcf/d to Thailand beginning in mid-1998. Most of the Yadana natural gas produced will be shipped via a 36-inch, 416-mile (669km) pipeline to a 2,800-megawatt electric power plant southwest of Bangkok. A separate sales agreement calls for 125 mmcf/d of gas to be supplied to Myanmar for domestic use.

Updated: March 1996