press release

Unocal says no oil, gas tested in Brunei well

El Segundo, Calif., July 8, 1997 -- Unocal Corporation today said that the Perdana Deep-1 well offshore Brunei was plugged and abandoned last week after testing showed no signs of oil or natural gas.

The company's Unocal Borneo Utara, Ltd., subsidiary acquired a 26.95 percent interest in the exploration project under a farm-in agreement with the operator, Fletcher Challenge Energy Borneo, Ltd., subject to government approval. Under that agreement, Unocal Borneo is to pay 100 percent of the costs of the Perdana Deep-1 well.

Unocal will record an after-tax charge of $12 million, or 5 cents per share, to operating earnings for the second quarter related to the unsuccessful well.

Updated: July 1997