ChevronTexaco Finds Oil in Four Wells Drilled Off Cambodia

ChevronTexaco has discovered oil in four exploration wells in offshore Cambodia Block A. The 6,278 square kilometer block, encompassing the Khmer Basin with water depths averaging 240 feet, was awarded to Chevron Overseas Petroleum (Cambodia) Ltd. (COPCL), and its partners in March 2002. COPCL has a 55 percent interest in the block and is the operator.

Oil pay logged in the wells ranges from 41 feet to 139 feet. Analysis of samples indicates the oil is 44 degree API crude.

John Watson, president of ChevronTexaco Overseas Petroleum, said: "The preliminary results of these exploration wells are promising, and they underscore the further success of our focused global exploration program. As a new exploration area for ChevronTexaco, Cambodia could offer the potential to build upon our already strong position in the Gulf of Thailand."

Keli Taureka, Managing Director of ChevronTexaco's Asia South Business Unit, added: "We are very encouraged to find oil in each of the first four wells of this drilling program, especially given that prior to us acquiring this block it had been explored through nine previous wells. However, it is important to complete the drilling program and fully assess the well results to determine the potential commerciality of the finds."

The five-well campaign began on October 13, 2004, with the drilling of the Pisnuka #1 which reached a total depth (TD) of 11,874 feet. The second well, Sovann Phum #1 spudded on November 4, 2004 (TD 12,232 feet), the third well, Sirey Sambat #1 on December 8, 2004 (TD 11,712 feet), and the fourth well, Pimean Akas #1 on December 27, 2004 (TD 11,660 feet). The drilling program will conclude with one more exploration well that is expected to be completed in February 2005.

The other partners in Block A are Moeco Cambodia Ltd. (30 percent interest) and LG Caltex Oil Co. (15 percent interest).