ChevronTexaco Subsidiary Announces Successful Gas/Condensate Appraisal Wells Offshore

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April 24, 2003

ChevronTexaco's Nigeria affiliate, Chevron Nigeria Limited (CNL), has announced the successful appraisal of a significant gas/condensate resource at the Sonam Field, located in shelf concession OML 91 in the shallow waters offshore Nigeria. The Sonam 04 and sidetrack, Sonam 04stl, appraisal wells were drilled by operator CNL on behalf of the Nigerian National Petroleum Corp. (NNPC)

The well results indicate a larger reserves potential than had previously been estimated with approximately 400 net feet of gas condensate pay found in each well. Two sandstone reservoirs demonstrated excellent reservoir quality during testing — with a combined test rate 58 million standard cubic feet (mmscf) of gas and 1,900 barrels (bbls) of condensate per day, while the second sand tested at a rate of 30 mmscf of gas and 5,600 barrels (bbls) of condensate per day. Both test rates were limited by the test equipment.

Commenting on the announcement, George Kirkland, president of ChevronTexaco Overseas Petroleum, said: "This successful appraisal program is a further boost to ChevronTexaco's successful exploration record in Nigeria, which is central to the company's plans to increase the value of its upstream assets in Africa."

Adding his comments, Jay Pryor, managing director of CNL, said: "Sufficient reserves exist to move forward with the evaluation of Sonam development options, including a possible tie in to Phase 3 of the Escravos Gas Project in the Western Niger Delta, or an early production system for stand alone condensate production with gas recycling.

"The development of Sonam would be in alignment with ChevronTexaco's goal to commercialize its undeveloped natural gas reserves. It would also support the Government of Nigeria's objective to develop the country's natural gas industry."


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