SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) August 17, 1998
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UNOCAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
1-8483 95-3825062
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(Commission File Number) (I.R.S. Employer Identification No.)
2141 Rosecrans Avenue, Suite 4000, El Segundo, California 90245
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(Address of Principal Executive Offices) (Zip Code)
(310) 726-7600
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(Registrant's Telephone Number, Including Area Code)
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ITEM 5. OTHER EVENTS.
On August 17, 1998, Unocal Corporation announced the discovery of a potentially
significant new oil and gas field in the deepwater Kutei Basin area offshore
East Kalimantan, Indonesia.
The first exploration well drilled on the Seno prospect, West Seno No. 2, is
located on the Makassar Strait production-sharing contract (PSC) area. The West
Seno No. 2 well was drilled to a true vertical depth subsea (TVDS) of 8,770 feet
in 2,800 feet of water.
The well encountered 172 feet of vertical oil pay in two zones between 7,300
feet and 8,600 feet TVDS. The first of two planned drillstem tests (DST) flowed
2,900 barrels of 37-degree API gravity oil per day and 3.1 million cubic feet of
gas per day on a 28/64-inch choke from an interval between 8,275 feet and 8,395
feet TVDS. Flowing tubing pressure was 2,170 pounds per square inch. Mechanical
conditions prevented a high rate test to measure the full potential of the well.
The second DST will be performed this week before preparing to drill the West
Seno No. 1 sidetrack well from the current location to further appraise the
reservoir. Following completion of that well, additional delineation drilling is
planned for the Seno area. The extent and commerciality of the Seno resource
will be determined after sufficient appraisal drilling is completed.
Unocal Indonesia Company is operator of the Makassar Strait PSC and has a
50-percent working interest. Mobil Makassar, Inc., holds the remaining
50-percent. Under the terms of the PSC, Unocal and Mobil, as contractors to
Pertamina, the Indonesian national oil company, are entitled to varying shares
of the oil and gas produced from commercial discoveries.
Unocal will focus now on confirming the commerciality of the discovery and begin
planning for rapid development utilizing a tension-leg platform concept.
The Seno prospect is approximately 13 miles northeast of the Merah Besar field
where Unocal recorded its first deepwater Indonesia oil and gas discovery last
year. Unocal is presently preparing a development plan for that field. The Merah
Besar field is located on the East Kalimantan PSC (Unocal, 100% working
interest) and the Makassar Strait PSC.
Forward-looking statements about future exploration activities and projected
results set forth above are based on assumptions concerning geology, regulatory
actions, economic, market conditions, operational concerns and other
considerations. Actual results could differ materially.
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
UNOCAL CORPORATION
(Registrant)
Date: August 17, 1998 By: /s/ JOE D. CECIL
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Joe D. Cecil
Vice President and Comptroller
