Chevron Corporation (Chevron) said that its affiliate, Cabinda Gulf Oil Company Limited (CABGOC) and its partners, have discovered oil and gas in Block 0 located offshore adjacent to the Cabinda coastline in Angola. The company looks forward to further evaluate the findings and potential development options.

The 79-3XST1 discovery well encountered over 225 feet of net hydrocarbon pay in the Upper Pinda formation. The well was tested from a single 150 feet perforated interval and flowed at a rate of 11.6 million cubic feet of natural gas and 2,550 barrels of liquid hydrocarbons per day.

Earlier in March 2009, Chevron drilled the 79-3XST1 discovery well in 397 feet of water to a total vertical depth of 13,000 feet.

The discovery extends a trend of undeveloped natural gas condensate and crude oil discoveries in the Greater Vanza Longui Area that are currently undergoing appraisal.

In a related development, the company, in July 2009, commenced first crude oil production from the Mafumeira Norte project in Block 0, located in 160 feet of water about 24 km offshore the Angolan coastline. The Mafumeira Norte project is the first phase development of the Mafumeira field. Chevron expects to reach maximum total production of 30,000 barrels of crude oil and 30 million cubic feet per day of natural gas in 2011 from the Mafumeira Norte project.

The Block 0 is divided into Areas A and B. Together, the areas contain 21 fields whose total production in 2008 was 344,000 barrels of liquids per day.

In Area A, Chevron is currently drilling the Banzala field which is expected to continue through the third quarter of 2009. The Takula Gas Processing Platform located in Area A, started up in December 2008. The Cabinda Gas plant is scheduled to start in the second half of 2009. In 2008, two delineation wells were drilled in Area A. One well found commercial quantities of hydrocarbons and was put into production whereas the second well was not commercially viable.

In Area B, the company is drilling Nemba and Kokongo fields. Front-end engineering and design continued in 2008 on the South N’Dola field development.

The company did feasibility studies for several projects, including the Greater Vanza/Longui area in Area B and the Southern Malongo area in Area A.

Seismic data collection in Block 0 began in December 2008 and is expected to continue into 2010.

Chevron, through CABGOC, has a 39.2% interest and is the operator of the Block 0 contractor group, which also includes SONANGOL E.P. (41%), Total E&P (10%) and ENI Angola Production B.V. (9.8%).

Chevron has an interest in four concessions – Block 0 off the coast of Cabinda Province, Block 14 farther west in the deep water, Block 2 offshore northwest Angola and the onshore block Fina Sonangol Texaco. The company also have an interest in Angola Liquefied Natural Gas, an onshore liquefied natural gas (LNG) joint venture.

Angola accounted for 5% of Chevron’s worldwide oil and gas production during the second quarter of 2009.

In 2008, Chevron’s operations in Angola had a total daily production of 534,000 barrels of liquids (145,000 net barrels).