Exhibit 99.1
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News Release
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[GRAPHIC OMITTED] Union Texas Petroleum 1330 Post Oak Boulevard
P.O. Box 2120
Houston, Texas 77252-2120
(713)623-6544
UNION TEXAS PETROLEUM TO JOIN EXPLORATION VENTURE IN ALGERIA
Contact: Carol Cox
713-968-2714
Houston, May 1, 1997 -- Union Texas Petroleum Holdings, Inc. (NYSE:
UTH) today announced that a wholly-owned subsidiary has agreed in principle to
acquire a 30% working interest in an exploration joint venture in the Ghadames
Basin in Algeria. Definitive agreements are being prepared.
Union Texas is acquiring its interest in two blocks in the Ghadames
Basin from Phillips Petroleum Company Algeria, a subsidiary of Phillips
Petroleum Company, which serves as operator and holds the remaining 70% working
interest. Terms of the acquisition, which are subject to final approvals from
the Algerian Ministry of Energy, were not disclosed.
The Bordj Messouda Blocks 406B and 209 comprise a total of about 1.5
million acres and are located in southeastern Algeria. Approximately 1,570
kilometers of 2-D seismic data over the two blocks have been acquired. The
venture plans to begin drilling the first of two exploratory wells in the third
quarter of 1997.
"This joint venture in the Bordj Messouda Blocks offers Union Texas
an outstanding opportunity to enter a high-quality exploration play in Algeria,"
said Union Texas Chairman and CEO John Whitmire. "Over the past several years, a
number of very significant oil discoveries have been made in this highly
prolific area in Algeria. We believe this area holds superior exploration
potential and we are excited to join this venture."
The Bordj Messouda joint venture represents the seventh new
exploration venture that Union Texas has joined since early 1997. In previous
announcements, Union Texas has reported that it is joining new ventures in
China, Yemen, Jordan, Bolivia, Greece and Papua New Guinea.
Union Texas also reported today that it has received final approval
from the Natural Resources Authority of the Hashemite Kingdom of Jordan to
acquire a 50% working interest from a subsidiary of Anadarko Petroleum Corp. in
an oil and gas production-sharing contract in 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 also is pursuing other high-potential exploration
ventures to further expand its exploration portfolio. The company plans to
participate in 25 to 30 exploration wells during 1997, including exploration
programs at its producing ventures in the U.K. North Sea, Indonesia and
Pakistan, up from 13 exploration wells in 1996.
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 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.
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For additional information, contact:
Carol Cox, media John Zimmerman, analysts and investors
713-968-2714 713-968-2740
A map of the Bordj Messouda Blocks is available by contacting Union Texas
Petroleum at (713) 968-2716.