Unocal Corp’s Spirit Energy 76 unit said increased explorationand development activity in the second half of 1999 in its Gulf ofMexico Continental Shelf and onshore regions has generatedadditional crude oil and gas resources that will provide theplatform for higher production levels at the end of 1999 and into2000.

Spirit Energy should achieve a production rate of between175,000 and 180,000 Boe/d by early 2000 and will have strong basefor increasing production rates through the year. Spirit’s thirdquarter production averaged 167,000 Boe/d.

“The high level of recent success associated with our stepped-upactivity demonstrates the continuing attractiveness of Unocal’sNorth American sustaining operations, as well as our ability tocontinue to generate significant cash flow and earnings throughincreased production,” said Timothy H. Ling, executive vicepresident for North America energy operations.

The company said the positive outlook for production comesdespite intentionally lower levels of activity earlier in the yeardue to depressed commodity prices. As prices improved, Unocal movedto increase exploration and development drilling activities in thesecond half of the year by contracting for a highly flexibledrilling rig fleet.

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