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UNOCAL TO SELL GLASS MOUNTAIN GEOTHERMAL PROSPECT

 LOS ANGELES, Jan. 5 /PRNewswire/ -- Unocal (NYSE: UCL) announced today that it has signed an agreement to sell its Glass Mountain/Medicine Lake geothermal properties in Northern California to California Energy General Corp. (CEGC), a wholly owned subsidiary of California Energy Co. Inc. (AMEX: CE). The sales price was not disclosed.
 The agreement is effective immediately, with the transaction expected to close not later than March 31, 1993.
 According to the agreement, Unocal will assign all its interests (approximately 61 percent) in the 41,000-plus acre Glass Mountain/Medicine Lake Federal Unit to CEGC. Unocal's Glass Mountain/Medicine Lake properties, including three producing wells, 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.
 California Energy Co. develops geothermal energy and operates power generating facilities internationally. The company operates five facilities, currently producing in excess of 250 megawatts.
 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.
 Darcel Hulse, vice president of Geothermal Resources and Power Generation at Unocal, reiterated that geothermal energy remains a core business for Unocal. "There are some excellent growth opportunities in geothermal energy," said Hulse. "We plan to take some of the proceeds from recent sales of domestic geothermal assets and redeploy those proceeds overseas. One major area of focus will be Indonesia, where the first 110 megawatts of power generation from Unocal's Salak field is scheduled to be on-line in early 1994," added Hulse.
 The Glass Mountain/Medicine Lake agreement is in addition to the recently announced sale of Unocal's Imperial Valley geothermal assets. The company expects to receive $196 million (after-tax) from the Imperial Valley sale.
 Both geothermal sales are part of a two-year, $700 million asset- sales initiative announced to Unocal stockholders last April. As part of this initiative, Unocal realized approximately $123 million (after-tax) in 1992, primarily from the sale of small oil and gas producing properties.
 During 1992 Unocal also sold a number of assets unrelated to its $700 million asset-sales initiative. The company realized $242 million (after-tax) from the sales of assets that were offered prior to April's announcement. In addition, Unocal recently announced the sale of its national Auto/TruckStop system, which is expected to yield an additional $152 million (after-tax) in the first quarter 1993.
 -0- 1/5/93
 /CONTACT: Jeff Callender of Unocal, 213-977-7208/
 (UCL CE)


CO: Unocal Corp.; California Energy General Corp.; California Energy
 Co. Inc. ST: California IN: OIL SU: TNM


JB -- LA005 -- 1547 01/05/93 08:32 EST
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Publication:PR Newswire
Date:Jan 5, 1993
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