Chevron Expands Delaware Basin Growth Program

Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX), announced that it reached a joint development agreement with Cimarex Energy Co. (NYSE: XEC) for Delaware Basin acreage in Culberson County, Texas, that also provides Chevron access to infrastructure including a gathering system, roads and utilities.

The eight-year agreement covers 104,000 acres to be operated by Cimarex. In addition to the acreage it contributes to the development area, Chevron will receive a 50-percent interest in Cimarex’s Triple Crown gathering system and a 50-percent interest in wells drilled during 2013.

“This transaction builds on Chevron’s premier position in the Delaware Basin and is another step in the execution of our Permian growth strategy,” said Alan Kleier, vice president of Chevron’s Mid-Continent business unit. “Our complementary acreage positions in West Texas and New Mexico, along with our common development outlook, make Chevron and Cimarex natural partners, and the large contiguous lease position will enable the optimum development of these resources.”

Chevron’s position in the Delaware Basin exceeds 1 million gross acres. The Delaware Basin contains several stacked oil and wet gas plays.

Headquartered in Houston, Chevron’s Mid-Continent business unit manages a large resource base of oil and liquids-rich gas opportunities and assets in seven states, and is also involved in numerous non-operated joint ventures in the U.S.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995.

This news release contains forward-looking statements about Chevron's activities in the U.S. Permian Basin. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "schedules," "estimates," "budgets" 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 prices of, demand for and supply of crude oil and natural gas; actions of competitors; the inability or failure of the company's joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of production and development activities due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations and changes in fiscal terms or restrictions on scope of company operations; 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 this 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.

Copyright Business Wire 2010

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