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) January 4, 2001
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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.
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Earnings Forecast
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The Company expects adjusted operating earnings (excluding special items) for
the fourth quarter 2000 to be between 95 cents and $1.05 per share. The earnings
estimate assumes an expected average price for West Texas Intermediate (WTI)
crude oil of $32.65 per barrel and an average Henry Hub natural gas price of
$5.50 per thousand cubic feet (mcf) in the fourth quarter. Pre-tax dry hole
expenses are estimated at $55 to $60 million, which includes the Company's
proportionate share of costs for the Dana Point well discussed below. The
earnings estimate does not include any special items.
Gulf of Mexico Deepwater Drilling Results
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The Company concluded drilling operations at its deepwater exploration well on
the Dana Point prospect in Walker Ridge Block 678 in the Gulf of Mexico.
The well was completed as a dry hole. Although the well reached its objectives
and penetrated hydrocarbon-bearing zones, it did not appear to hold commercial
quantities of pay. The well will be temporarily plugged and abandoned while the
Company conducts a full evaluation of the well data. The well was drilled in
7,036 feet of water to a total depth of 26,850 feet in 119 days at an estimated
gross cost of $51 million ($36 million net to Unocal). The Company is operator
and holds an 80-percent working interest in Walker Ridge Block 678.
The company plans to move the Discoverer Spirit drillship to the Dendara
prospect, located in Green Canyon Blocks 785 and 786, the next well in the
Company's 2001 deepwater exploration program. The Company is operator and holds
a 75-percent working interest in the two blocks.
Indonesia Deepwater Drilling Results
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The Company's Unocal Rapak, Ltd., subsidiary drilled a natural gas and crude oil
discovery on the Ranggas prospect in the southern portion of the Rapak
Production-Sharing Contract (PSC) area, offshore East Kalimantan, Indonesia.
The Ranggas-1 well was drilled to a total depth of 11,845 feet in 5,303 feet of
water. The well encountered 250 feet of gas pay and 40 feet of oil pay. The
discovery well is located on a new geologic structure approximately 28 miles
southeast of Indonesia's first deepwater field, West Seno, which is currently
being developed by the Company. Unocal Rapak, Ltd. expects to conduct
delineation drilling on the structure, with additional results expected in March
2001.
Unocal Rapak, Ltd. is operator of the Rapak PSC and, pending approval of the
Indonesia national oil company (Pertamina), holds an 80-percent working
interest. Under the terms of the PSC, Unocal Rapak, Ltd., as a contractor to
Pertamina, is entitled to varying shares of the oil and gas produced from
commercial discoveries.
This filing contains certain forward-looking statements regarding the Company's
earnings, commodity prices, exploration and drilling activities and dry hole
costs. These statements are based upon Unocal's current expectations and are
subject to a number of known and unknown risks and uncertainties. Actual results
could differ materially as a result of factors discussed in Unocal's 1999 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: January 11, 2001 By: /s/ JOE D. CECIL
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Joe D. Cecil
Vice President and Comptroller
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