ChevronTexaco Looking for Parnters in Capercaillie Prospect

ChevronTexaco Upstream Europe is pleased to offer interested companies the opportunity to acquire/farm-in up to 50% equity in a large undrilled high impact exploration play. The prospect, known as "Capercaillie", is located 200km northwest of the Shetland Isles in water depths ranging from 1,500 to 1,600m (Blocks 213/5 & 214/1, License P1025 refer). The acreage was awarded to ChevronTexaco (90%) and Intrepid (10%) under the UK 19TH licensing Round in 2001.

Investment in this opportunity will enable ChevronTexaco to continue an aggressive exploration program in the region - having already drilled three wildcats in the past eighteen months, with encouraging early results. Additionally, ChevronTexaco is very pleased with its recent success in having been awarded equity in 29 blocks in the 22nd UK Offshore Licensing round. This allows the company to consolidate its position around the aforementioned acreage, which has seen recent activity, while providing the opportunity to explore in a previously unlicensed frontier area.

Building on this success, early plans are in place to drill the Capercaillie prospect in the 2005/2006 timeframe, subject to ChevronTexaco farming down part of its high equity holding to partners of choice for this prospect.