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News Release
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Union Texas Petroleum
1330 Post Oak Boulevard
P.O. Box 2120
Houston, Texas 77252-2120
(713) 623-6544
Contact: Carol Cox
713-968-2714
UNION TEXAS PETROLEUM TO JOIN NEW EXPLORATION VENTURES IN
BOLIVIA, YEMEN, JORDAN, GREECE AND PAPUA NEW GUINEA
Houston, February 12, 1997 -- Union Texas Petroleum Holdings, Inc.
(NYSE: UTH) today announced that it is entering into several new exploration
ventures in a number of areas worldwide, including Bolivia, Yemen, Jordan,
Greece and Papua New Guinea. Chairman and CEO John Whitmire and Senior Vice
President Art Peabody discussed the company's 1997 exploration plans at an
energy conference hosted by PaineWebber today in New York.
"Our 1997 exploration activities reflect the major strategic changes
we are making to our exploration program," said Whitmire. "We are putting much
greater emphasis on proven basins with an objective of being a participant in
emerging oil and gas plays in areas that have proven hydrocarbon systems and
significant potential. We are placing less emphasis on frontier plays which the
company had focused on in the past few years."
During the past 12 months, Union Texas has been pursuing a number of
additions to its exploration portfolio:
*o The company is joining an oil and gas venture in Bolivia where an
exploration well is planned for 1997; Union Texas' participation in
the venture is pending final approvals from the Bolivian government.
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*o In Yemen, Union Texas will participate in a venture that plans to
conduct a seismic program during the first half of 1997 with plans for
one or two exploration wells in the second half of 1997.
*o Union Texas has entered into an agreement to acquire a 50% working
interest from a subsidiary of Anadarko Petroleum Corp. in an oil and
gas production sharing contract in the Hashemite Kingdom of Jordan.
Two stratigraphic test wells are planned to be drilled in 1997 to
evaluate the area's stratigraphic column and confirm the presence of a
working petroleum system. Union Texas' acquisition is subject to final
approval by the Natural Resources Authority of Jordan.
*o Union Texas also is participating in a group led by Enterprise Oil
which the Greek government has invited to negotiate the conclusion of
lease agreements for two blocks onshore western Greece. If
negotiations are successfully concluded, the venture currently plans
to conduct seismic studies in 1997 with plans to drill in 1998 or
1999.
*o In Papua New Guinea, Union Texas has signed an agreement in principal
to enter an additional exploration block. The block is located in the
highlands, where several significant discoveries recently have been
made.
"We are very excited to enter these new exploration ventures,"
Whitmire noted. "These programs represent significant progress in building a
more balanced, long-term exploration portfolio. We are pursuing additional
high-potential exploration ventures to further expand our opportunities."
During 1997, Union Texas plans to participate in 25 to 31 exploration
wells, including exploration programs at its producing ventures in the U.K.
North Sea, Indonesia and Pakistan.
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Union Texas earlier announced a 1997 capital spending program of
approximately $229 million, of which $68 million is earmarked for exploration
activities, an increase of nearly 90% from $36 million spent in 1996. About $42
million, or 61%, of the $68 million budgeted for exploration programs in 1997 is
allocated for the company's new exploration ventures.
As part of Union Texas' 1997 exploration program, the company also is
participating in drilling and seismic activities in Italy's Southern Apennines
area, onshore and offshore Tunisia, Alaska's Kenai Peninsula and a new block in
Eastern Pakistan.
One of the largest independent producers located in the U.S.,
Houston-based Union Texas Petroleum Holdings, Inc. (NYSE:UTH) explores for and
produces oil and gas overseas primarily in the U.K. North Sea, Indonesia and
other strategic areas. The company has petrochemical operations in Louisiana.
This news release contains forward-looking statements within the
meaning of the Securities Litigation Reform Act that involve risks and
uncertainties, including price volatility, exploration, development, operational
and implementation risks, and other factors described from time to time in the
company's publicly available SEC reports, which could cause actual results to
differ materially. This capital spending budget is subject to revision based
upon results of activities, market conditions, acquisition opportunities and
other factors.
NOTE TO EDITORS AND REPORTERS: For more information, contact:
Carol Cox, media 713-968-2714 (office)
713-968-2711 (fax)
John Zimmerman, analysts and investors 713-968-2740
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