press release

Unocal produces 1,500 barrels of oil per day from new McArthur River horizontal well

Anchorage, Sept. 10, 1998 - Unocal Corporation today said a new horizontal development well in the McArthur River field in Cook Inlet is producing 1,500 barrels of oil per day (bopd). The reworked well raises gross daily production from the Grayling platform by more than 36 percent.

The Grayling G-15RD horizontal well was drilled to a point 9,507 feet from the platform at a vertical depth of 9,559 feet. More than 2,700 feet of the well was completed in the Hemlock formation. The well, sidetracked from an existing well, was part of Unocal's development program for the Grayling platform. The platform was producing approximately 4,150 bopd prior to completion of the G-15RD well.

Unocal has a 56.05-percent working interest in the Grayling platform.

"This wellbore sidetrack demonstrates the opportunities to help extend the productive life of the field. Other McArthur River field platforms have similar development opportunities," said Martin Morell, Unocal's oil and gas operations manager.

This well completed Unocal's 1998 program of reworking and redrilling wells on the Grayling platform. Similar horizontal well development work is slated for 1999 from additional platforms in the McArthur River field.

Updated: September 1998