Mobil Announces Natural Gas Discovery in South Texas.

FAIRFAX, Va.--(BUSINESS WIRE)--June 29, 1998--

New Ponciano Ruiz No. 1 Well Producing at 17 Million Cubic Feet Per Day

Mobil Corp. announced Monday that its domestic exploration and production company, Mobil Exploration & Producing U.S. Inc. (MEPUS), has confirmed a new natural gas field discovery in South Texas.

The new Ponciano Ruiz No. 1 Well, located in the Rich Hurt Field in western Duval County, was drilled to a measured depth of 11,936 feet and is producing gas from the Wilcox Hinnant formation at an initial gross rate of 17 million cubic feet per day (MMCFD).

The new field production represents the first discovery as a result of a previously announced strategic exploitation and development drilling alliance formed with J.M. Huber Corp. and Quisto Ventures, L.C. in January of this year. Jointly, the alliance controls more than 27,000 acres in the Upper Wilcox Trend, and is currently drilling an inventory of high-quality prospects.

Mobil, as operator, holds a 45.375 percent interest in the Rich Hurt Field. J.M. Huber Corp. and Quisto Ventures hold 37.125 percent and 17.5 percent interests respectively.

The streaming of the new well brings Mobil's South Texas net working interest production to approximately 95 MMCFD, which is even with 1997 levels. Mobil operates 330 wells in eight counties in South Texas.

"These newly streamed volumes are indicative of our overall efforts to maintain production at current levels in our U.S. E&P business, while improving financial performance," said J. Michael Yeager, president and general manager of MEPUS. "In order to have the potential to add new production volumes, it's important to be in the right places. We believe the South Texas Wilcox Trend is an area we know well and offers the potential for further additions to our South Texas business."

Production from the Ponciano Ruiz No. 1 well is being marketed by Duke Energy Trading and Marketing, L.L.C., a joint venture between Mobil and Duke Energy.

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