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) April 8, 2002
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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)
Item 5. Other Events.
Unocal tests Ranggas oil discovery on deepwater Rapak PSC offshore Indonesia
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Unocal Corporation announced that its Unocal Rapak, Ltd., subsidiary
successfully tested an appraisal well in the deepwater Ranggas oil field
offshore Indonesia. The Ranggas-4 appraisal well flowed at a daily rate of 8,158
barrels of oil and 6.4 million cubic feet of gas from a single interval between
10,174 feet and 10,224 feet true vertical depth subsea (TVD). The drillstem test
had flowing tubing pressure of 1,223 pounds per square inch on a 56/64-inch
choke.
The Ranggas-4 well encountered 181 feet of net oil pay and 57 feet of net gas
pay. The well was drilled in 5,208 feet of water to 11,252 feet TVD. The well is
located 2.4 miles north of the Ranggas-1 discovery well and 1.2 miles south of
the Ranggas-3 appraisal well. The test results are another step towards the
future possible commercialization of the Company's third deepwater oil field in
Indonesia. The company plans to spud the Ranggas-5 appraisal well, also on the
main Ranggas structure, before the end of April 2002.
Two wells were drilled recently to test structures on both the north and the
west parts of the large central Ranggas prospect. The Ranggas Utara-1 well
encountered 33 feet of net oil pay and 44 feet of net gas pay. The well was
drilled in 5,258 feet of water to 12,650 feet TVD. The well is located 2.5 miles
north of the Ranggas-3 well. This accumulation was deemed sub-commercial as an
independent development at this time, but it demonstrates the potential for
additional hydrocarbons to the north of the Ranggas field.
The Ranggas West-1 well encountered 85 feet of net gas pay in two intervals. The
well was drilled to 9,955 feet TVD in 4,483 feet of water. The well is located
2.9 miles west of Ranggas-3. This accumulation could most likely be tied back to
the future Ranggas development facilities via a single subsea well. Oil
potential remains in the southern extension of this trend. Several additional
prospects on trend or adjacent to the main Ranggas structure remain to be
drilled. This includes the Api prospect where the Api-1 well is currently being
drilled.
Unocal Rapak is operator of the Rapak production-sharing contract area and holds
an 80 percent working interest. Under the terms of the PSCs, Unocal Indonesia
Company and its affiliates, including Unocal Rapak, Ltd., as contractors to
Pertamina, the Indonesia national oil company, are entitled to varying shares of
the oil and gas produced from commercial discoveries.
Provision for Environmental Remediation
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The Company anticipates that its first quarter 2002 reported net earnings will
include a provision of approximately $30 million ($20 million after tax) for
additional reserves for environmental remediation. Substantially all of the
provision, which results from the Company's regular quarterly review of
remediation obligations, relates to formerly operated sites, sites previously
sold with retained responsibilities and other inactive sites.
Forward-looking statements and estimates regarding future drilling plans,
possible development activities, and projected provisions for environmental
reserves in this filing are based on assumptions about engineering, geophysical,
geological studies, operational, market, competitive, regulatory, environmental,
political and other considerations. Actual results could differ materially as a
result of factors discussed in Unocal 's 2001 Annual Report on Form 10-K and
subsequent reports.
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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: April 8, 2002 By: /s/ JOE D. CECIL
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Joe D. Cecil
Vice President and Comptroller
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