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Chevron Announces Successful Test Well at St. Malo in Gulf of Mexico

  Chevron Announces Successful Test Well at St. Malo in Gulf of Mexico

                Results further demonstrate field’s potential

Business Wire

SAN RAMON, Calif. -- February 28, 2013

Chevron Corporation (NYSE: CVX)  today announced that it had conducted a
successful production test on the St. Malo PS003 well in the prolific Lower
Tertiary trend in the deepwater Gulf of Mexico. Oil flow rates, though limited
by testing equipment constraints, exceeded 13,000 barrels of oil per day.

The test, in Walker Ridge Block 678, targeted Lower Tertiary sands more than
20,000 feet (6,096 m) under the sea floor and was conducted during August and
September 2012. This is the first development well in the St. Malo field,
which is being jointly developed with the Jack field.

“The well test is a further demonstration of the potential of the Lower
Tertiary and highlights our leadership in developing deepwater resources
globally,” said Chevron Vice Chairman George Kirkland.

“The results of this production test further confirm the significance of the
St. Malo field," said Gary Luquette, president, Chevron North America
Exploration and Production Company.“The jointly developed Jack and St. Malo
fields are expected to provide a major step-up in Chevron’s production from
2014 and produce domestic energy for decades to come.”

The Jack and St. Malo fields are located within 25 miles (40 km) of each other
and are being jointly developed with a host floating production unit located
between the two fields in 7,000 feet (2,134 m) of water, approximately 280
miles (450 km) south of New Orleans, Louisiana. The facility is planned to
have a design capacity of 177,000 barrels of oil-equivalent per day to
accommodate production from the Jack/St. Malo development, which is estimated
at a maximum total daily rate of 94,000 barrels of oil-equivalent, plus
production from third-party tiebacks. Total project costs for the initial
phase of the development are estimated at $7.5 billion.

Chevron has a working interest of 51 percent in the St. Malo field. Other
owners of the St. Malo field are Petrobras (25 percent), Statoil (21.5
percent), ExxonMobil (1.25 percent) and ENI (1.25 percent).

Chevron is one of the world’s leading integrated energy companies, with
subsidiaries that conduct business worldwide. The company is involved in
virtually every facet of the energy industry. Chevron explores for, produces
and transports crude oil and natural gas; refines, markets and distributes
transportation fuels and lubricants; manufactures and sells petrochemical
products; generates power and produces geothermal energy; provides energy
efficiency solutions; and develops the energy resources of the future,
including biofuels. Chevron is based in San Ramon, Calif. More information
about Chevron is available at www.chevron.com.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose
of “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of
1995

This news release contains forward-looking statements about Chevron's
activities in the U.S. Gulf of Mexico. Words such as "anticipates," "expects,"
"intends," "plans," "targets," "projects," "believes," "seeks," "schedules,"
"estimates," "budgets" and similar expressions are intended to identify such
forward-looking statements. The statements are based upon management's current
expectations, estimates and projections; are not guarantees of future
performance; and are subject to certain risks, uncertainties and other
factors, some of which are beyond the company's control and are difficult to
predict. Among the factors that could cause actual results to differ
materially are changes in prices of, demand for and supply of crude oil and
natural gas; actions of competitors; the inability or failure of the company's
joint-venture partners to fund their share of operations and development
activities; the potential failure to achieve expected net production from
existing and future crude oil and natural gas development projects; potential
delays in the development, construction or start-up of planned projects; the
potential disruption or interruption of production and development activities
due to war, accidents, political events, civil unrest, or severe weather;
government-mandated sales, divestitures, recapitalizations and changes in
fiscal terms or restrictions on scope of company operations; and general
economic and political conditions. You should not place undue reliance on
these forward-looking statements, which speak only as of the date of this
press release. Unless legally required, Chevron undertakes no obligation to
update publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.

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Contact:

Chevron Corporation
Russell Johnson, +1 713-372-1841
 
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