Koil Energy Solutions Inc. (KLNG)

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Chevron Confirms Development of Nigeria Deepwater Field
Friday, February 29, 2008

http://www.subseaiq.com/News/Articles/200802/Chevron_Confirms_Development_of_Nigeria__9055.aspx

Chevron confirms that its subsidiary Chevron Nigeria Deepwater Limited and its co-venturers are moving forward to develop the offshore Usan field in Nigeria.

"The Usan development project adds to Chevron’s deep queue of projects that are expected to generate significant new production from West Africa's deep water," said Ali Moshiri, president, Chevron Africa and Latin America Exploration and Production.

Discovered in 2002, the Usan Field is located at a water depth of 2,461 feet (750 meters) in Oil Mining License 138 approximately 62 miles (100 kilometers) off the coast in the eastern Niger Delta. The development plan for the Usan Field includes a floating production, storage and offloading (FPSO) vessel with a storage capacity of 2 million barrels of oil. First production is expected in late 2011 with peak production of 180,000 barrels of oil per day. The associated gas will be reinjected in the reservoir.

"Usan will further enhance Chevron's already strong position in Nigeria and West Africa," said Fred Nelson, managing director, Chevron Nigeria/Mid-Africa Strategic Business Unit.

Co-venturers in the Usan Field development are Chevron Nigeria Limited (30 percent), Elf Petroleum Nigeria Limited (20 percent and operator), Esso Exploration and Production Nigeria (Offshore East) Ltd. (30 percent), and Nexen Petroleum Nigeria Ltd. (20 percent).