press release

Unocal Mobile 904 field begins natural gas production; rate expected to reach 50mmcf/day

Sugar Land, Texas, Jan. 9, 1997 -- Unocal Corporation's Spirit Energy 76 unit today announced the start of natural gas production from the Fort Gaines Mobile 904 field offshore Mississippi. The single-well field is producing more than 33 million cubic feet (mmcf) of gas per day from the Norphlet Formation.

Production from the Mobile 904 #2 well, drilled to a total depth of 22,100 feet, is expected to rise to about 50 mmcf/day once the well has stabilized. Flowing tubing pressure is 13,225 pounds per square inch on a 32/64-inch choke. Mobile 904 is about 45 miles southwest of Mobile, Ala., in approximately 60 feet of water.

Spirit Energy 76 is Unocal's oil and gas operating unit in the Lower 48 states. The company was recently formed to provide sharper focus on domestic U.S. growth opportunities and continuing operational improvements in the company's extensive oil and gas holdings throughout the Louisiana/Gulf of Mexico region.

The addition of the Mobile 904 field production raises Spirit's working interest production from the Mobile area to 70 mmcf/day. Spirit has a 66.67 percent working interest in the Mobile 904 field, while Vastar Resources, Inc., holds the remaining interest. Spirit also has a 25 percent working interest in the Mobile 861 field, which is currently producing 15 mmcf/day, and is processed at the Mobile 904 complex. The Mobile 861 field is operated by Chevron.

Spirit is also operator of the Fort Morgan Complex, the Mobile 916 Unit offshore Alabama. Gross natural gas production from five Norphlet trend wells (depth below 22,000 feet) and two shallower Miocene wells in the unit is averaging about 115 mmcf/day. Spirit has a 45.65% working interest in the Fort Morgan Complex.

"The Mobile area provides significant growth opportunities for us," said Jack W. Schanck, president of Spirit Energy 76. He noted that Spirit currently holds interests in 20 blocks covering approximately 65,000 net acres in the Mobile area. The company is operator for 14 of the blocks.

In addition to the Mobile area, Schanck said that Spirit was focusing its efforts on the deepwater sections of the Gulf and the transition zone in the shallow waters offshore Louisiana.

Updated: January 1997