ChevronTexaco Successful at Plataforma Deltana Block 2 Well

ChevronTexaco's affiliate in Venezuela today confirmed that its offshore Plataforma Deltana Loran 2X exploration well in Block 2 has encountered a significant amount of natural gas.

Loran 2X is ChevronTexaco's first well in Block 2, which is on a fault block adjacent to the original Loran 1X discovery well drilled in 1982 by Petroleos de Venezuela, S.A. (PDVSA).

George Kirkland, president of ChevronTexaco Overseas Petroleum, said, "The confirmation of the Loran field discovery could go a long way toward developing a commercially viable natural gas resource base in Venezuela, which would align with our strategy to grow an integrated global gas business. This success underscores our corporate exploration strategy of focusing on core, high-impact opportunities and builds on our other recent exploration successes in Australia, Nigeria and Angola."

The Loran 2X well encountered five gas sand intervals for a total gross thickness of 494 feet (149 meters). The well was tested at a rate in excess of 32 MMCFD from two sand intervals and both tests were equipment-restricted. The well commenced drilling on schedule August 11, 2004 in 360 feet (109 meters) of water and has reached its total depth as planned.

"We are optimistic with the results of the Loran 2X well," said Ali Moshiri, president of ChevronTexaco Latin America Upstream. "We have now completed testing of two major reservoirs in Block 2 and we plan to drill two more wells by the end of the year," Moshiri added.

ChevronTexaco (60%) operates Block 2 in partnership with ConocoPhillips (40%). The company, along with PDVSA, was recently awarded by the Venezuelan Ministry of Energy and Mines the exploration license for Plataforma Deltana Block 3, which is on trend with Block 2.

ChevronTexaco activities in Venezuela include exploration, production, commercialization and marketing projects. Besides Plataforma Deltana Blocks 2 and 3, ChevronTexaco operates the Boscan and LL652 fields in Western Venezuela and holds a 30% share in the Hamaca Project, one of the four heavy oil strategic associations in the prolific Orinoco Belt. It also has a national network of 84 Texaco-branded service stations, commercializes lubricants for vehicles and industrial clients and distributes jet fuel at the Arturo Michelena International Airport in Valencia. Through Chevron Oronite Latin America, the company holds a strategic alliance with Deltaven (a PDVSA subsidiary) supplying 80% of requirements for lubricant additives to Deltaven. ChevronTexaco headquarters for Latin America are located in Caracas and a high percentage of its personnel in Venezuela are formed by Venezuelan citizens who support the company operations all across the region.