Chevron awarded 50% exploration rights in new Gorgon block

Another permit area has been granted in the Gorgon LNG project, covering 3,000 sqkm, with Chevron Australia Ltd the major beneficiary of the three-year work program.

The W06-12 permit area in the Carnarvon Basin includes both the North West Shelf and Greater Gorgon Area resources.

Chevron Australia will be the operator of the block and will hold a 50 per cent interest in the project, with the Australian subsidiaries of ExxonMobil and Shell each holding a 25 per cent interest.

The full text of a Chevron announcement is pasted below

Chevron Awarded New Acreage Offshore Australia

Chevron Named Operator and Awarded 50 Percent Interest in Exploration Block

SAN RAMON, Calif., Feb. 19, 2007 - Chevron Corporation (NYSE:CVX) today announced that its subsidiary Chevron Australia Pty Ltd has been awarded the exploration rights to acreage in the highly prospective Greater Gorgon Area located off the northwest coast of Australia.

Chevron Australia will be the operator of the block and will hold a 50 percent interest; the Australian subsidiaries of ExxonMobil and Shell will each hold a 25 percent interest.

"This award demonstrates progress on Chevron's strategy to achieve superior exploratory success from a focused, high-impact exploration program," said John Watson, president, Chevron International Exploration and Production. "Australia continues to feature prominently in our plans to build an internationally competitive natural gas business to supply energy to both the country and other regions around the world."

Jay Johnson, managing director, Chevron Australia Pty Ltd, added, "Awarding of this acreage highlights Chevron's significant and continuing exploration and development investment aimed at unlocking Australia's gas resources."

The W06-12 permit area in the Carnarvon Basin covers an area of approximately 1,150 square miles (3,000 square kilometers) and lies approximately 60 miles (100 kilometers) northwest of the Australian coastline. The Carnarvon Basin, Australia's premier petroleum basin, includes both the North West Shelf and Greater Gorgon Area resources.

The three-year work program for the permit area includes geotechnical studies, approximately 110 miles (180 kilometers) of 2-D seismic reprocessing, 650 square miles (1,700 square kilometers) of 3-D seismic survey acquisition and the drilling of an exploration well. Seismic work will begin this year. There is potential for a further three-year work program.

Headquartered in Perth, Western Australia, Chevron Australia is operator and 50 percent joint-venture participant in the Gorgon Project, joint-venture participant in the North West Shelf Venture, operator and joint venture-participant in the Barrow Island and Thevenard Island oil fields, and operator of significant exploration acreage located off the northwest coast of Australia.