Chevron Announces Significant Gas Discovery in Australia

SAN RAMON, Calif., Nov. 9, 2006 -- Chevron Corporation (NYSE: CVX) today announced a significant natural gas discovery at its Clio-1 exploration well located 90 miles (150 kilometers) offshore northwestern Australia in permit WA-205-P.

The Clio-1 well was completed in September 2006 and was drilled using Transocean’s semi-submersible drilling rig Jack Bates in water depths of approximately 3,000 feet (960 meters) with total vertical depth of drilling to 15,500 feet (4725 meters).

The well discovered 623 feet (190 meters) of net gas sands in the Mungaroo Formation, which places Clio as one of the top wells in Australia in terms of total net pay.

“Our two significant gas discoveries in Chandon and Clio this year demonstrate the benefits of Chevron focusing our exploration program in key basins such as northwestern Australia,” John Watson, president of Chevron International Exploration and Production, said.

“Our continued exploration success in Australia, combined with our commitment to developing these resources, offers great prospect for gas markets in Australia and across the Asia-Pacific and North America regions.”

Jay Johnson, managing director of Chevron Australia, said, "The Clio discovery highlights the quality of our exploration capability in the region and the significance of northwestern Australia to Chevron’s energy portfolio.

“Chevron will be undertaking further work, including a 3D seismic survey program starting in mid-December, to better determine the potential of the gas find and subsequent development options,” he added.

“Our efforts to commercialize the fields of the Greater Gorgon area, our commitment to the expansion of the North West Shelf Venture and our increased exploration and development program in the region all have the potential to deliver significant long-term benefits to Australia,” explained Johnson.

Chevron affiliates Chevron Australia Pty Ltd and Texaco Australia Pty Ltd operate permit WA-205-P and hold 67 percent interest. Shell Development Australia holds 33 percent.

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.

Chevron Corporation is one of the world’s leading energy companies. With more than 55,000 employees, Chevron subsidiaries conduct business in over 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing, and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.

CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

Some of the items discussed in this press release are forward-looking statements about Chevron’s activities in Australia. Words such as “estimated” “planned” and similar expressions are intended to identify such forward-looking statements. The statements are based upon management’s current expectations, estimates, and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company’s control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in the demand for and supply of crude oil and natural gas; actions of competitors; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest or severe weather; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of the press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

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