Unocal Announces Deepwater Discovery Offshore Indonesia

Unocal Corporation's subsidiary, Unocal Rapak, Ltd., has drilled two successful exploration appraisal wells on the Ranggas prospect in the southern portion of the Rapak Production-Sharing Contract (PSC) area, offshore East Kalimantan, Indonesia.

Unocal Rapak has drilled two additional wells as a follow-up to the initial discovery announced in January 2001. Both wells encountered significant oil and gas pay.

The Ranggas-2 well encountered 155 feet (47 meters) of net oil pay and 118 feet (36 meters) of net gas pay. The well was drilled to a total depth of 13,661 feet (4,163 meters) in 5,192 feet (1,582 meters) of water. The Ranggas-2 well is located in the southern portion of the Ranggas structure, nearly a mile southwest of the discovery well.

The Ranggas-3 well encountered 306 feet of net oil pay and 123 feet of net gas pay. The well was drilled in 5,368 feet (1,636 meters) of water to a total vertical depth of 13,248 feet (4,038 meters). The well is located 3.4 miles (5.5 kilometers) north of the discovery well in the central portion of the Ranggas structure.

Based on drilling to date, the company estimates the gross unrisked resource potential for the Ranggas structure is between 190 million barrels-of-oil-equivalent (MMBOE) and 650 MMBOE.

"We are extremely encouraged by the significant oil component of the Ranggas discovery," said Charles R. Williamson, Unocal chief executive officer. "Our Kutei basin program has been extremely successful, but until now we have found more gas than oil. Given Ranggas and the 'look-alike' adjacent prospects that we have developed, we are excited about the next phase of our exploration program, which will definitely be oil-focused."

In the next phase of drilling, Unocal Rapak will drill 4-8 wells beginning late in 2001 or early in 2002 to further delineate the Ranggas discovery and test at least two adjacent prospects. The company expects to determine commerciality and the size of the production facilities in this second drilling phase.

Unocal Rapak is operator of the Rapak PSC area. It holds an 80-percent working interest, while Lasmo Rapak, Limited, a subsidiary of ENI, holds the remaining 20-percent working interest.