UNOCAL CORP: announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

3 Mar 2004drilling progress report▲ GoodMajor

Unocal reported a successful Gehem-2 appraisal well in the Ganal area offshore East Kalimantan: a gas column over 550 feet, 240 feet of net gas pay and 55 feet of net oil pay, with a test flow of 31 million cubic feet of gas and 1,917 barrels of condensate a day. This builds on the July 2003 Gehem-1 discovery; next come a deep test on the Gula structure and Gehem-3 in the second quarter of 2004 (Unocal holds 80%). Separately, Unocal received $60 million from PT PLN for its rights in the Sarulla geothermal project in Sumatra, and will record a gain in the first quarter of 2004.

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14 Jan 2004drilling progress report▲ GoodMajor

Unocal reported a significant oil discovery at the BP-operated Puma well in Green Canyon block 823, Gulf of Mexico, with about 500 net feet of oil pay at 19,034 feet; Unocal holds 15% (BP 51.66%, BHP Billiton 33.34%). The field size is not yet known and needs more seismic and appraisal drilling. Separately, a second Hawkes well in Mississippi Canyon 508 found non-commercial hydrocarbons and was plugged and abandoned, with an approximately $8 million pre-tax charge to fourth quarter 2003 earnings.

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24 July 2003drilling progress report▲ GoodMajor

Unocal reported a gas-condensate and oil discovery at the Gehem-1 well in the Ganal contract area offshore East Kalimantan, Indonesia, 3.5 miles south of Ranggas: 617 feet of net gas and gas-condensate pay and 18 feet of net oil pay in 5,981 feet of water. It also finished the Ranggas Selatan-1 appraisal well in the Rapak area, with 187 feet of net oil pay and 258 feet of net gas pay, extending Ranggas to the south. Unocal holds 80% in both areas and still plans to have Ranggas ready for government approval by early next year; this advances the Ranggas appraisal thread from earlier filings.

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8 Apr 2002drilling progress report● Neutral

Unocal said its subsidiary Unocal Rapak, Ltd. successfully tested the Ranggas-4 appraisal well offshore Indonesia, which flowed 8,158 barrels of oil and 6.4 million cubic feet of gas a day; the filing calls it a step toward possible future commercialization of its third deepwater oil field in Indonesia. Two other nearby wells were drilled: Ranggas Utara-1 was deemed sub-commercial on its own at this time, and Ranggas West-1 found gas that could most likely be tied back to future Ranggas facilities. Ranggas-5 is planned to start before the end of April 2002. Separately, Unocal expects a first-quarter 2002 provision of about $30 million ($20 million after tax) for environmental cleanup, mostly for formerly operated, previously sold (with retained responsibility) and inactive sites.

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