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UNOCAL REPLACES 86 PERCENT OF OIL AND GAS PRODUCTION, INCREASES VALUE OF RESERVES ADDED

 LOS ANGELES, March 11 /PRNewswire/ -- Unocal Corp. (NYSE: UCL) today said that in 1992, despite curtailed capital spending, it replaced 86 percent of its worldwide oil and gas production, on an oil-equivalent basis, with new reserves that resulted in $1.70 of pre-tax value for every dollar invested. On a similar basis in 1991, Unocal's value added was $1.55, which put it among the best for the industry that year.
 The company's worldwide crude oil, condensate and natural gas reserves for 1992 totaled 2.07 billion barrels of oil equivalent (BOE), down from 2.09 billion BOE in 1991. Last year was the first time in six years the company did not replace more than 100 percent of its production with new reserves.
 "In 1992 we gave high priority to reducing the company's debt, which resulted in less capital spending and more asset sale activity," said Richard J. Stegemeier, Unocal chairman and chief executive officer. "We achieved these reserve replacement results despite such strong emphasis on debt reduction. Now, having paid down more than $1 billion of debt in 1992 alone, we plan to spend 49 percent more on worldwide petroleum development this year than we did last year. We'll also keep the emphasis on adding reserves that add good value."
 Unocal's strong value-added results for 1992, Stegemeier noted, reflect the company's large inventory of relatively low risk, high- return development projects in North America and overseas. In 1992, overseas discoveries and field extensions, particularly in Thailand, Indonesia and the Netherlands, accounted for a large part of the additions to reserves. These additions, however, did not fully offset the impact of production volumes and asset sales.
 Unocal's reserve replacement rate of 86 percent includes the effect of 1992 producing property sales and purchases. Excluding the effect of these sales and purchases, Unocal's replacement rate would have totaled 98 percent. Proceeds from the oil and gas properties sold contributed $123 million to after-tax cash flow.
 Worldwide for 1992, Unocal replaced 93 percent of its crude oil and condensate production and 80 percent of its natural gas production. The company replaced 149 percent of foreign oil and condensate production and 136 percent of gas production. In the United States, the company replaced 56 percent of its oil and condensate production and 41 percent of gas production.
 Proved reserves of crude oil and condensate declined less than 1 percent, from 799 million barrels in 1991 to 794 million barrels at year-end 1992. Foreign oil and condensate reserves rose 7 percent, from 270 million barrels a year ago to 288 million barrels at year- end 1992. Domestic oil and condensate reserves were down 4 percent, from 529 million barrels to 506 million barrels.
 Proved natural gas reserves declined by less than 2 percent, from 6,858 billion cubic feet to 6,737 billion cubic feet. Foreign gas reserves rose 3 percent to 2,906 billion cubic feet from 2,815 billion cubic feet. Domestic gas reserves fell 5 percent, from 4,043 billion cubic feet to 3,831 billion cubic feet.
 Unocal calculates the conversion of natural gas to crude oil equivalent at the ratio of 5.3 thousand cubic feet to one barrel. This represents the equivalent BTU energy content of natural gas to crude oil.
 UNOCAL CORP.
 Oil and Gas Reserve Data

 at December 31, 1992
 Estimated Proved Reserves: Crude Oil & Condensate
 (millions of barrels)
 United States Foreign Total
 Reserves at Dec. 31, 1991 529 270 799
 Revisions of estimates 6 7 13
 Improved recovery 3 --- 3
 Discoveries and extensions 11 56 67
 Purchases of reserves 16 --- 16
 Sales of reserves (12)(a) (8) (20)(a)
 Production (47)(b) (37) (84)(b)
 Reserves at Dec. 31, 1992 506 288 794
 Estimated Proved Reserves: Natural Gas
 (billions of cubic feet)
 United States Foreign Total
 Reserves at Dec. 31, 1991 4,043 2,815 6,858
 Revisions of estimates 30 (66) (36)
 Discoveries and extensions 175 499 674
 Purchases of reserves 50 2 52
 Sales of reserves (108) (92) (200)
 Production (359) (252) (611)
 Reserves at Dec. 31, 1992 3,831 2,906 6,737
 Estimated Proved Reserves: Barrels of Oil Equivalent
 (millions of barrels)
 United States Foreign Total
 Reserves at Dec. 31, 1991 1,292 801 2,093
 Revisions of estimates 12 (6) 6
 Improved recovery 3 --- 3
 Discoveries and extensions 44 150 194
 Purchases of reserves 25 --- 25
 Sales of reserves (32)(a) (25) (57)(a)
 Production (115)(b) (84) (199)(b)
 Reserves at Dec. 31, 1992 1,229 836 2,065
 (a) Includes the sale of 7 million barrels of future production under forward contracts in 1992.
 (b) Excludes 8 million barrels produced in 1992 but sold under forward contracts in 1991.
 -0- 3/11/93
 /CONTACT: Janet McClintock of Unocal, 213-977-5047/
 (UCL)


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

KJ -- LA005 -- 5074 03/11/93 11:41 EST
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