press release

Unocal tests two successful exploration wells in Moragot field offshore Thailand

El Segundo, Calif., Sept. 23, 1997 -- Unocal Corporation today announced the successful tests of two exploration wells in the Moragot field on Block B12/27 in the Gulf of Thailand.

The successful exploration wells by Unocal Thailand, Ltd., a Unocal subsidiary, are part of a program to evaluate the new Moragot field. Two earlier wells drilled on the block indicated the presence of hydrocarbons. Based on available test data to date, the company now estimates that the Moragot field could contain 250 to 300 billion cubic feet (bcf) of recoverable gas, with an upside resource potential of 500 bcf.

"The encouraging results of the Moragot-3 and Moragot-4 wells indicate there are sufficient commercial gas supplies to supplement planned production from the nearby Pailin field under the existing sales contract," said Charles R. Williamson, Unocal group vice president, International Operations. "We are now evaluating development options and hope to bring this field on-stream following the start-up of Pailin production."

The Pailin field, which lies to the west of the Moragot field also in Block B12/27, is scheduled to begin production in late 1998 at 165 million cubic feet per day (mmcfd), rising to 330 mmcfd in late 1999.

Unocal Thailand is operator and holds a 35 percent working interest in the concession block. The other co-concessionaires are PTT Exploration & Production (PTTEP), 45 percent interest; Amerada Hess Exploration (Thailand) Co., Ltd., 15 percent; and MOECO Thai Oil Development Company (Motodeco), 5 percent.

The Moragot-3 well tested at a flow rate of 11.1 million cubic feet per day (mmcfd) of gas and 203 barrels per day (b/d) of condensate from a drillstem test at 6,868 feet. The Moragot-4 well yielded a cumulative flow rate of 12.8 mmcfd and 420 b/d of condensate from drillstem tests of two zones between 7,126 and 10,266 feet.

Unocal and its co-concessionaires are currently producing gas and condensate from nine fields in the Gulf. For the first eight months of 1997, gross production averaged 970 mmcfd of gas and 34,300 b/d of condensate. The bulk of the gas is used to fuel power generation plants. The amount of gas produced by Unocal Thailand is equivalent to about 25% of Thailand's domestic electricity demand. The company recently celebrated the three trillionth cubic foot of gas produced since 1981.

Unocal Corporation is one of the world's leading energy resource and project development companies, with reserves of more than 9.8 trillion cubic feet of natural gas equivalent (1.6 billion barrels of oil equivalent) and major oil and gas production activities in Asia and the U.S. Gulf of Mexico. The company maintains headquarters in both California and Malaysia.

Forward-looking statements in this news release, including estimates of recoverable resource quantities and production levels, are based on assumptions concerning market, competitive, regulatory, environmental, operational and other considerations. Actual results could differ materially.

Updated: September 1997