press release

Unocal Thailand drills 7 successful gas appraisal wells in Pailin field

El Segundo, Calif., Feb. 25, 1997 -- Unocal Corporation today said its Unocal Thailand Ltd. subsidiary has completed seven successful natural gas appraisal wells in the Pailin field in the Gulf of Thailand. The wells are part of a drilling program to confirm gas reserves required to move ahead with Phase II of the Pailin development program.

"The objective of the drilling program is to prove up sufficient additional reserves in the field to boost gross production from the planned 165 million cubic feet per day (mmcfd) in the first phase of the field development to as high as 330 mmcfd in Phase II by 2001," said Brian W. G. Marcotte, president of Unocal Thailand.

Unocal is operator and holds a 35 percent interest in the B12/27 concession block where Pailin is located. Other co-venturers include PTT Exploration & Production Public Co. (PTTEP), 45% interest; Amerada Hess (Thailand) Ltd., 15% interest; and MOECO Thai Oil Development Company (Motodeco), 5% interest.

Pailin is Unocal Thailand's largest single project in terms of infrastructure, Marcotte said. The company plans to install about 30 wellhead platforms and a central processing platform (CPP). A second CPP may be installed depending upon the results of the Phase II drilling.

Six of the wells were drilled in the previously unexplored North Pailin area. The seventh well, Pailin-22, extended the potential field limits of the existing Pailin production contract area to the south. The North Pailin drilling program began in September 1996.

Unocal is currently preparing an application to declare North Pailin as a separate production area. In August 1996, the Unocal-led consortium signed a 30-year gas sales agreement for Pailin with the Petroleum Authority of Thailand. Production is expected to begin in the last quarter 1998. The Pailin field was discovered in 1990.

Marcotte added that the company expects to drill six more appraisal wells to confirm sufficient recoverable gas supplies to proceed with the Pailin Phase II development. Delineation drilling is expected to resume in March.

Unocal Thailand Ltd.
Pailin Successful Appraisal Well Drilling Program
Well Pay Comments
Pailin-18 102 feet Extends North Pailin productive area to western edge of Graben - 2 drill stem tests show cumulative flow: 20 mmcf gas/day, 130 b/d of condensate; 48/64" choke
Pailin-19 254 feet Confirms platform location in central part of North Pailin - drill stem test shows 6 mmcf/d gas, 453 b/d condensate; 32/64" choke
Pailin-20 69 feet Extends potential North Pailin productive area to East
Pailin-21 188 feet Confirms platform location in southern part of North Pailin
Pailin-22 29 feet Potential southern extension of original Pailin production area - drill stem test shows mmcf/d gas, 463 b/d condensate; 40/64" choke
Pailin-23 138 feet Confirms platform location in Central North Pailin
Pailin-25 168 feet Confirms platform location in western part of North Pailin

Updated: February 1997