TEXACO CONFIRMS AUSTRALIA NATURAL GAS DISCOVERY.

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Dec. 21, 1994--Texaco confirmed today that a significant natural gas discovery has been made off the coast of northwest Australia by Western Australian Petroleum Pty. Ltd (WAPET), a consortium in which Texaco has a 28.6 percent interest.

Drilling has been completed on the discovery well, called Chrysaor-1, located about 100 miles offshore Australia in Block WA205P. Results are still being evaluated by Texaco and partners Ampolex Ltd., Chevron and Shell, with tests expected to be finished within a month.

Commenting on the find, Texaco Inc. Vice President and President of the Middle East/Far East Division Dr. William P. Doyle, said: "This discovery on the Chrysaor structure, coupled with the recent successful appraisal program on the massive nearby Gorgon field, puts Texaco in a strong position to participate in the growing Pacific Rim liquefied natural gas market. Texaco holds a 50 percent interest in the block to the north of this discovery, presenting us with additional attractive oil and natural gas prospects to explore in the near future."

Four wells have been drilled to date on the giant Gorgon field on the Northwest Shelf of Australia. Present reserve estimates for the Gorgon structure are in the order of 14 trillion cubic feet (tcf) of gas in place, with 4 tcf as Texaco's share. Additional wells are planned, with the goal of confirming sufficient reserves to support a long-term LNG sales contract. North Gorgon No. 2 well recently tested at a combined rate of 175 million cubic feet per day over four zones.

In Western Australia, Texaco holds more than 15 million net acres, mostly on the highly prospective Carnarvon Basin. Total WAPET production has been increased recently from 50,000 barrels per day (bpd) to approximately 80,000 bpd through the addition of the Roller and Skate fields.

CONTACT: TEXACO INC.

David Dickson, [phone]