Chevron announces natural gas discoveries offshore Western Australia; Acme West-1 well encountered about 377 ft. of net gas pay, Acme West-2 well found 184 ft. of net gas pay

Graziela Medina Shepnick

SAN RAMON, California , October 27, 2011 (press release) – Acme West-1 and -2 exploration discoveries continue drilling success in Australia

Chevron Corp. (NYSE: CVX) today announced further drilling success by its Australian subsidiary in the Carnarvon Basin offshore Western Australia, Australia's premier hydrocarbon basin.

The Acme West-1 well encountered approximately 377 ft (115m) of net gas pay, while Acme West-2 well encountered 184 ft (56m) of net gas pay. The two wells, located in the WA-205-P permit area, add additional resources adjacent to last year's Acme discovery.

The Acme West-1 and Acme West-2 exploration discovery wells are approximately 93 miles (150km) from Onslow, and were drilled in 3,035ft (925m) of water. Acme West -1 was drilled to a total depth of 15,558 ft (4,742 m) and Acme West 2 was drilled to 14,590 ft (4,447 m).

George Kirkland, vice chairman, Chevron Corporation, said, "This is our 11th exploration discovery in a 24-month period. Our exploration success and ability to continually add to our Australian portfolio supports our long-term plan to position Chevron as one of the world's leading LNG suppliers."

"The discoveries are expected to help underpin potential expansion opportunities at the Wheatstone liquefied natural gas (LNG) hub, which moved to the construction phase in September 2011.

Melody Meyer, president, Chevron Asia Pacific Exploration and Production Company, said, "We are realizing the benefits of our investment in an extensive drilling campaign and the opportunities we have as a leading lease holder in the Carnarvon Basin.

"The discoveries underscore the quality of the company's drilling program, and commitment to technical excellence and safe operations."

Chevron Australia is the operator of the WA-205-P permit and holds a combined 67 percent interest, while Shell Development (Australia) holds the remaining interest.

Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; 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.

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