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UNOCAL LAUNCHES CHAKACHATNA PROJECT

 LOS ANGELES, Jan. 27 /PRNewswire/ -- Unocal Corp. today announced plans to invest $119 million to develop significant offshore crude oil reserves at its Chakachatna properties, a group of four platforms located in south Alaska's Cook Inlet.
 The initial three-year development plan is part of a longer-term program designed to realize the full producing potential of Unocal's Chakachatna properties, which the company acquired in 1990. Those properties include Platforms Baker and Dillon in the Middle Ground Shoal field and Platforms Anna and Bruce in the Granite Point field to the north. Unocal holds a 100 percent interest in all of the properties.
 For the initial phase, the Chakachatna project calls for drilling 20 new development wells. These new wells are expected to increase production from the four platforms to approximately 11,000 barrels of oil daily, up from the current 4,000 barrels per day. The results of the initial phase will assist in planning additional development for the four platforms.
 The Chakachatna project will apply geophysical concepts and drilling techniques that proved successful last year at the Granite Point Platform, in the southern part of the Granite Point field. Unocal announced plans for further development at that platform last month.
 Chakachatna development will make use of Unocal's expertise in extended-reach drilling. At the Granite Point Platform, extended- reach wells were found to be four to five times more productive than conventional wells. Also, Granite Point work proved the Hemlock zone to be a new, deeper producing zone for that platform. As part of Chakachatna development, the first development well in the Hemlock formation will be drilled from Platform Anna. The remainder of the drilling will be in the shallower Tyonek formation. Both formations have been highly productive in other parts of the Cook Inlet.
 "We expect this first phase to lead to further development over the next five to seven years," said Wylie R. Barrow, Jr., general manager of Unocal's oil and gas operations in Alaska. "Thanks to the techniques and knowledge we now have, there's additional potential to be tapped."
 Chakachatna is one of the North American development projects made possible by a private issue of $513 million in Unocal convertible preferred stock completed last July. Proceeds from that offering were used to pay down debt in 1992. This made it possible for cash flow that otherwise would have gone toward debt service to be applied to an accelerated development program.
 Chakachatna's drilling program calls for four wells to be drilled in 1993, 11 in 1994 and five in 1995. Work will begin at Platforms Bruce and Baker, move to Dillon and then Anna. Platform Dillon, which had suspended operations in 1991 because of declining output, will be reactivated. The capital investment includes purchasing a drilling rig, drilling the 20 wells and installing associated production facilities on the platforms.
 -0- 1/27/93
 /CONTACT: Janet McClintock of Unocal, 213-977-5047/
 (UCL)


CO: Unocal Corp. ST: California IN: OIL SU:

JL -- LA020 -- 9642 01/27/93 12:08 EST
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Date:Jan 27, 1993
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