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UNION TEXAS PETROLEUM ESTIMATES FIRST QUARTER NET INCOME BEFORE EXTRAORDINARY ITEM AT $48 MILLION

 UNION TEXAS PETROLEUM ESTIMATES FIRST QUARTER NET INCOME
 BEFORE EXTRAORDINARY ITEM AT $48 MILLION
 HOUSTON, April 22 /PRNewswire/ -- Union Texas Petroleum Holdings, Inc. (NYSE: UTH) estimates its 1992 first quarter net income before an extraordinary item will be approximately $48 million, or $0.42 per share, compared to $58 million, or $0.52 per share, in 1991's corresponding period, Chairman and CEO Clark Johnson told stockholders at the company's annual meeting here today. Including the extraordinary charge of approximately $20 million, or $0.23 per share, related to the early redemption of $410 million of subordinated notes in February 1992, the company estimates net income for the first quarter of 1992 will be approximately $28 million, or $0.19 per share, as compared to $58 million, or $0.52 per share, in the prior year.
 "The company's performance for the first quarter of 1992 was affected by lower interest income on U.K. tax refunds and decreased prices for crude oil, Indonesian liquefied natural gas ("LNG") and U.S. ethylene, somewhat offset by lower interest expense, decreased general and administrative costs and a gain on the sale of an interest in an onshore Argentine oil and gas production service contract," Johnson said.
 Revenues for 1992's first quarter are projected to be $196 million, down from $355 million in 1991's same period, reflecting the absence of the U.S. exploration and production and gas processing businesses sold during 1991, lower interest income on U.K. tax refunds and decreased oil and LNG prices.
 Highlighting Union Texas' major programs for 1992, Johnson said that the company plans to spend about $315 million on its international oil and gas operations during 1992, with emphasis on its interests in the U.K. North Sea and Indonesia.
 In the North Sea, development projects are under way at the Piper, Saltire and Chanter oil fields. The Piper field is slated to be on line by the end of 1992, with Saltire and Chanter expected to commence production in late 1992 or early 1993. "After the start-up of Piper, Saltire and Chanter, our net oil production from the North Sea is expected to increase dramatically from an average of 13,900 barrels of oil a day during 1991 to approximately 45,000 barrels a day in 1993," Johnson commented.
 In Indonesia, Union Texas and its joint venture partners provide natural gas to a government-owned LNG plant at Bontang Bay, which is currently being expanded again to meet the growing demand for LNG by Pacific Rim countries. "Our joint venture is working to meet this increasing demand with a major development drilling program that will boost our gas production from fields in East Kalimantan," Johnson pointed out. Johnson also noted that Union Texas expects gas production at its operations in Pakistan to continue to increase in 1992 with the addition of two new fields.
 "We continue to be strongly committed to expanding our exploration portfolio with the goal of adding major oil and gas reserves. Since 1989, our acreage position in frontier plays has grown from 1.9 million net acres to 11.7 million. These new exploration ventures are exciting, because they provide us wier is participating in a multi-well drilling program in Alaska's Colville Delta area. Union Texas also is conducting seismic evaluations of new prospects offshore Argentina and in Eastern Indonesia and is participating in a new venture in Papua New Guinea. In its coalbed methane recovery ventures in Europe, Johnson said that Union Texas expects to begin exploration drilling on one of its prospects in Spain during 1992's second quarter.
 In the business portion of the meeting, Union Texas' stockholders re-elected the company's 13 directors to one-year terms expiring in 1993. The re-elected directors include Johnson; J.W. Barter, senior vice president and chief financial officer of Allied- Signal Inc.; B.D. Forrow, retired senior vice president and general counsel of Allied-Signal Inc.; S.A. Fox, partner of Kohlberg Kravis Roberts & Company ("KKR"); E.L. Hennessy Jr., retired chairman and chief executive officer of Allied-Signal Inc.; J. Kohlberg Jr., partner of Kohlberg & Co.; H.R. Kravis, partner of KKR; M.W. Michelson, partner of KKR; S.P. Porter, retired vice chairman of Arthur Young & Company; G.R. Roberts, partner of KKR; R.R. Shinn, retired executive vice chairman of the New York Stock Exchange and retired chairman of Metropolitan Life Insurance Company; S. Stough, retired vice president- finance of Chevron Corporation; and J.T. Zusi, vice president and controller of Allied-Signal Inc. The company's stockholders ratified the appointment of Price Waterhouse as independent accountants.
 One of the nation's largest independent producers, Houston- based Union Texas Petroleum Holdings, Inc. explores for and produces oil and gas overseas primarily in the U.K. North Sea, Indonesia and other strategic international areas. The company also has petrochemicals interests in the United States.
 -0- 4/22/92
 /CONTACT: Carol L. Cox of Union Texas Petroleum, 713-968-3258/
 (UTH) CO: Union Texas Petroleum Holdings Inc. ST: Texas IN: OIL SU: ERP


TQ -- NY017 -- 1099 04/22/92 09:22 EDT
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Date:Apr 22, 1992
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