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UNOCAL TO SELL IMPERIAL VALLEY GEOTHERMAL ASSETS

 LOS ANGELES, Dec. 16 /PRNewswire/ -- Unocal (NYSE: UCL) announced today that it has signed a sale and purchase agreement with Magma Power Co. (NASDAQ-NMS: MGMA) to sell all of Unocal's Imperial Valley, Calif., geothermal operations, along with other domestic exploratory geothermal assets, for $225 million plus working capital.
 In addition to the initial sales price, Unocal will 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.
 The agreement is effective as of Dec. 31, 1992, with the transaction expected to close not later than March 31, 1993. All of the net cash flow from the assets will accrue to Magma from Jan. 1, 1993, forward.
 According to the agreement, Magma will receive all leases and personal property related to Unocal's Imperial Valley geothermal 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 assign to Magma geothermal leases in prospect areas referred to as Long Valley, Calif., and Blue Clay and New York Canyon, Nev.
 The agreement also contains a provision allowing Magma to utilize Unocal's proprietary technology at the acquired facilities and in Magma's existing Imperial Valley plants.
 Magma, a San Diego-based firm, is a leading geothermal company with leaseholds and operating power plants in California and Nevada. With the additional assets acquired from Unocal, Magma's power plant generating capacity will be 240 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.
 "Geothermal energy remains a core business for Unocal, despite our decision to sell certain domestic geothermal properties," said John F. Imle, president of Unocal's Energy Resources Division. "We intend to redeploy some of the proceeds from this sale to pursue growth opportunities overseas."
 Imle noted that Unocal's main focus in geothermal energy development will now be in Indonesia. "The company is developing the Salak prospect and is currently negotiating to explore and develop a second significant geothermal resource area on Sumatra," he said. At the Salak field, steam deliveries to the first 110 megawatt power plant are scheduled to begin in late 1993, with commercial production commencing during the first half of 1994.
 After-tax proceeds from the Imperial Valley sale will total about $196 million, excluding working capital. Combined with $123 million (after-tax) realized in 1992, primarily from the sale of small oil and gas producing properties, Unocal is nearly halfway toward meeting its two-year, $700 million asset-sales goal announced to stockholders last April.
 Unocal has also realized $242 million after-tax this year from the sales of assets that were offered prior to April's announcement.
 The recently announced sale of the company's national Auto/TruckStop system, which is not part of the $700 million asset sale initiative, is expected to yield an additional $152 million after-tax in the first quarter 1993.
 -0- 12/16/92
 /CONTACT: Jeff Callender of Unocal, 213-977-7208/
 (UCL MGMA)


CO: Unocal Corp.; Magma Power Co. ST: California IN: OIL UTI SU: TNM

JB-LS -- LA017 -- 7552 12/16/92 08:32 EST
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Publication:PR Newswire
Date:Dec 16, 1992
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