press release

Unocal Thailand confirms commerciality of Pakarang gas field

El Segundo, Calif., Sept. 24, 1998 -- Unocal Corporation today said that successful delineation wells in the Gulf of Thailand have confirmed the commerciality of the Pakarang gas field.

Pakarang is located in concession block 11, north of Unocal's Erawan field, which is covered under a Unocal sales contract with the Petroleum Authority of Thailand.

The Pakarang-4 well was drilled to a depth of 9,895 feet and found 498 net feet of gas-bearing sands in 28 zones. Pakarang-5, drilled to 9,559 feet, found 374 net feet of gas-bearing sands in 18 zones. One 22-foot thick zone in the Pakarang-5 well tested at 15.3 million cubic feet a day (mmcfd) of gas and 239 barrels per day (b/d) of condensate on a 7/8-inch choke.

"This drilling success has proved the economic potential of Pakarang and shows there is additional potential throughout the field," said Brian W.G. Marcotte, president of Unocal Thailand, Ltd. "Unocal is the primary gas supplier to the Kingdom of Thailand. The additional gas resource at Pakarang will help ensure that we will continue producing at current levels for many more years, as the market demands."

Based on the latest drilling information, the estimated gross resource potential for Pakarang is between 250 and 500 billion cubic feet of gas. The company has identified several other prospects with similar potential to the two delineation wells. With the additional information gained from the drilling program, the company intends to prepare a plan of development for the field.

Unocal Thailand (71.25% working interest) is the operator of the Pakarang field for its co-venturers Mitsui Oil Exploration Co., Ltd. (23.75%) and PTT Exploration and Production Public Company Limited (5%).

"These two successful wells show that there are significant gas resources in the Gulf of Thailand waiting to be discovered using new technologies," Marcotte said.

Unocal is one of the world's largest independent oil and gas exploration and production companies, with major resource development, power plant and pipeline projects in Asia, the U.S. Gulf of Mexico region and Latin America.

Unocal Thailand currently operates 11 natural gas and condensate fields in the Gulf of Thailand with an average 74-percent gross working interest. Gross production from the fields is expected to average nearly 1 billion cubic feet per day in 1998, nearly two-thirds of the natural gas used by Thailand. The natural gas is used in power generation, the transportation sector, and the petrochemical industry. Natural gas produced by Unocal Thailand yields about one quarter of the electricity consumed in Thailand. Gross condensate production, currently averaging 33,000 b/d, is used as a blending stock in oil refineries, as a chemical solvent, and as a petrochemical feedstock.

Forward-looking statements, including planned future operating and exploration activities, in this news release are based on assumptions concerning market, competitive, regulatory, environmental, operational, and other considerations. Actual results could differ materially.

Updated: September 1998