Chevron Upstream Europe

Chevron Upstream Europe

January 23, 2007 12:39 ET

Ptarmigan Owners Conclude Equity Agreement With Oilexco

ABERDEEN, SCOTLAND--(CCNMatthews - Jan. 23, 2007) - Chevron North Sea Limited, a UK subsidiary of Chevron Corporation, and Oilexco North Sea Limited announced today that they have concluded an agreement, subject to DTI approval, in which Oilexco will acquire up to 60% equity in the Ptarmigan discovery in Block 15/29a under UK Central North Sea Licence P240 from the existing owners.

Chevron is the current operator of the discovery with a 70% equity position; the other owners are ConocoPhillips (25%) and Gaz de France (5%). Ptarmigan was discovered in 1994.

Under the agreement, Oilexco will drill a single appraisal well on the discovery to earn 45% of Ptarmigan with the option of acquiring additional equity by drilling additional sidetracks, up to a maximum of 60%. Subject to DTI approval, Oilexco will become Ptarmigan operator on completion of the drilling programme.

Ptarmigan lies close to the Brenda field which is operated by Oilexco.

Commenting on the deal, Rick Cohagan, President and Managing Director of the Chevron Upstream Europe Strategic Business Unit, said, 'This agreement is another excellent example of creative thinking applied to maximising the value of our assets. Oilexco is an operator with a track record of optimising exploration opportunities and hopefully will help us fulfil the potential of this discovery.'

"We look forward to working with Chevron and the other partners on this project", said Arthur Millholland, Oilexco President and Chief Executive Officer.

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