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UNOCAL COMPLETES SALE OF IMPERIAL VALLEY, GLASS MOUNTAIN GEOTHERMAL ASSETS

 LOS ANGELES, March 31 /PRNewswire/ -- Unocal Corp. (NYSE: UCL) oration said today that its operating subsidiary, Union Oil Company of California, has completed the sale of its geothermal operations in California's Imperial Valley, as well as the sale of its Glass Mountain/Medicine Lake geothermal properties in Northern California.
 Unocal's Imperial Valley geothermal operations, along with other domestic exploratory geothermal assets, were sold to Magma Power Co. for $225 million plus working capital.
 Unocal could also receive up to $15 million in contingent payments from Magma based on the addition of new power generating capacity and a 1 percent royalty on the revenues from such additions.
 Magma received all leases and assets related to Unocal's Imperial Valley operations. This includes three power generating facilities with a combined capacity of 80 megawatts, and about 43,000 net acres of geothermal leases and fee properties.
 In addition, Unocal will be assigning geothermal leases in prospect areas referred to as Long Valley, Calif., and Blue Clay and New York Canyon, Nev., to Magma.
 "The sale of these assets went very smoothly," said Darcel Hulse, vice president of geothermal resources at Unocal. "We had great cooperation from all parties and we're particularly pleased that all our employees were provided opportunities for continued employment."
 In a separate sale, Unocal assigned all its interests (approximately 61 percent) in the 41,000-plus acre Glass Mountain/Medicine Lake Federal Unit to California Energy General Corp., a subsidiary of California Energy Co. Inc. The sales price was not disclosed.
 The Glass Mountain/Medicine Lake properties, including three wells capable of production, are located on federal land in Siskiyou County, about 35 miles northeast of Mount Shasta and approximately 25 miles south of the California/Oregon border.
 Unocal continues to be the world's largest geothermal producer, supplying steam to generating plants at The Geysers in Northern California and in the Philippines. The total capacity of those plants is nearly 1,700 megawatts.
 John F. Imle, president of Unocal's Energy Resources Division, reiterated that geothermal energy remains a core business for Unocal. "We intend to redeploy some of the proceeds from these sales to pursue growth opportunities overseas," said Imle.
 In Indonesia, the first 110 megawatts of power generation from Unocal's Salak field, on the island of Java, is scheduled to be on- line in early 1994.
 Unocal also recently signed an agreement with Pertamina, the Indonesian state oil company, to appraise and develop geothermal resources located in the Sarulla Contract Area in northern Sumatra. That deal includes a power sales agreement with Pertamina and PLN, the state-owned electric company, to generate up to 1,000 megawatts of electricity from geothermal steam and to deliver the electrical power to PLN's transmission system.
 Both geothermal asset sales are part of a $700 million asset- sales initiative announced to Unocal stockholders last April. As part of this initiative, Unocal realized nearly $200 million (after- tax) in 1992, primarily from the sale of small oil and gas properties.
 Sales in 1993, including the last major assets of Unocal's PureGro subsidiary and other oil and gas properties, have generated another $76 million (after-tax). Combined with net after-tax proceeds of approximately $215 million from the geothermal sales (including $22 million realized in 1992), Unocal is two-thirds of the way towards meeting its asset sales goal.
 Unocal indicated that the geothermal asset sales will not significantly impact the company's first quarter 1993 earnings.
 -0- 3/31/93
 /CONTACT: Barry Lane of Unocal, 213-977-7601/
 (UCL)


CO: Unocal Corp.; Union Oil Company of California; Magma Power Co. ST: California IN: OIL SU: TNM

KJ -- LA023 -- 9805 03/31/93 15:01 EST
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Date:Mar 31, 1993
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