Chevron Confirms Successful Field Appraisal Program in Australia

Chevron Corporation (NYSE:CVX) today announced the successful results of a seven-well exploration and appraisal program for the Wheatstone and Iago fields in northwest Australia. Following the completion and analysis of the appraisal program, the fields are estimated to hold enough natural gas resources to support a two-train Wheatstone liquefied natural gas (LNG) and domestic gas project.

George Kirkland, executive vice president, Chevron Global Upstream and Gas, said, "The success with the recent appraisal program moves the Wheatstone project a step closer to commercialization. The Wheatstone project offers a strategic opportunity for Chevron and third parties to develop natural gas resources in the western Carnarvon Basin, as well as deliver energy, jobs and economic benefits to Australia.”

Chevron announced plans to locate the Wheatstone project at Ashburton North near Onslow in late 2008 and expects to enter front-end engineering and design in the second half of 2009.

"The Wheatstone project, together with Gorgon, is an important part of Chevron’s strategy to develop its large natural gas resource base in Australia and be a leading supplier of LNG. In support of these two major capital projects, the company intends to undertake its largest-ever drilling campaign in Australia,” Kirkland added.

Discovered in 2004, the wholly owned Wheatstone Field is located in the WA-253-P and WA-17-R permit areas. The field is 125 miles (200 kilometers) north of Onslow in water depths of around 650 feet (200 meters). The adjacent Iago Field was discovered in 2000 and spans two retention permits, WA-17-R, which is wholly owned by Chevron Australia, and WA-16-R, in which Shell Development (Australia) Pty Ltd. has a one-third share, with Chevron holding the remainder.

The offshore northwest shelf of Australia is one of four exploration focus areas for Chevron. During 2009, Chevron plans to conduct a large drilling program with two rigs scheduled to drill multiple exploration and appraisal wells in its operated acreage.

Chevron Corporation is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company’s success is driven by the ingenuity and commitment of approximately 62,000 employees who operate across the energy spectrum. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about 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 "anticipates,” "expects,” "intends,” "plans,” "targets,” "projects,” "believes,” "seeks,” "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; timely development of the field; 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.

U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. Certain terms, such as "resources,” "oil in place,” "recoverable natural gas resources,” "oil-equivalent resources,” "potentially recoverable volumes,” "recoverable reserves,” and "recoverable oil,” among others, may be used in this press release or other public disclosures that are not permitted to be used in filings with the SEC.