Acquisition augments prominent position in liquids-rich Permian Basin

SAN RAMON, Calif.--(BUSINESS WIRE)--Sep. 12, 2012-- Chevron Corporation (NYSE: CVX) announced that its subsidiary, Chevron U.S.A. Inc., has agreed to acquire 246,000 net leasehold acres in the Delaware Basin in New Mexico, a part of the Permian Basin, from Chesapeake Energy Corporation (NYSE: CHK). Terms of the agreement were not disclosed.

"This acquisition in a premier emerging play in the Permian Basin grows our significant leasehold position there," said George Kirkland, vice chairman, Chevron Corporation. "These early-in-life, liquids-rich unconventional assets have the potential to be significant future contributors to Chevron's robust North American operations."

"This investment gives us significant exposure to stacked Delaware Basin plays where we already enjoy a substantial position," said Gary Luquette, president of Chevron North America Exploration and Production Company. "It complements our existing Permian Basin operations and provides us access to additional people and resources to execute our growth strategy there."

Chevron already holds approximately 700,000 net acres in the Delaware Basin, which contains several oil and wet gas plays stacked together within several thousand feet of hydrocarbon-bearing rock. The plays include the Avalon Shale and the Bone Spring Sands.

The acreage included in the agreement has current net production of 7,000 barrels of oil equivalent per day, with the potential to increase substantially over the next few years. The acquired acreage will become part of Chevron's operated and non-operated existing Delaware Basin activities.

The transaction is subject to some third-party preferential rights and is expected to close within the next 30 days, pending customary regulatory approvals.

Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; 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. Chevron is based in San Ramon, Calif. More information about Chevron is available at http://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.

Except for the historical and factual information contained herein, the matters set forth in this press release, including statements as to the expected benefits of the acquisition such as synergies, competitive cost structure, growth potential, market profile and financial strength, and the competitive capabilities of the combined operations, and other statements identified by words such as "estimates," "expects," "projects," plans," "adds," and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the possibility that the anticipated benefits from the acquisition cannot be fully realized, the possibility that costs or difficulties related to the integration of these operations into Chevron will be greater than expected, the impact of competition and other risk factors relating to our industry as detailed from time to time in Chevron's reports filed with the SEC. 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.

Source: Chevron Corporation

Chevron Corporation
Russell Johnson, +1 713-372-1841


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