Atlantic Richfield - Drilling Report

RNS No 1566u
ATLANTIC RICHFIELD COMPANY
27th August 1997


ARCO Announces Test Results of Vorwata Gas Discovery in Eastern Indonesia

LOS ANGELES, Aug. 27 /PRNewswire/ -- ARCO's Indonesian subsidiary today
released test results of a major natural gas discovery in the Vorwata
structure offshore Irian Jaya in eastern Indonesia.

The discovery well, Vorwata No.1, tested 30 million cubic feet per day (mmcf/d)
in January 1997 from intervals in formations of Jurassic and Permian age. The
Vorwata No.2 confirmation well, an 11-mile stepout from Vorwata No.1, tested 34
mmcf/d during April 1997, from over 400 feet of net pay in Jurassic age
sandstones. A third well on the structure, Vorwata No.3, tested 29 mmcf/d during
July 1997. Jurassic interval rates were limited primarily by test tubing
constraints.


The Vorwata discovery is in the Berau block which ARCO (NYSE: ARC) and its
partners hold under a Production Sharing Contract with Pertamina, the Indonesia
state oil company.

"The Vorwata discoveries are significant because they are in close proximity to
our Weriagar discoveries in eastern Indonesia," said Leon Codron, President of
Atlantic Richfield Indonesia, Inc., ARCO's subsidiary in Indonesia. "Vorwata
augments our plans for a major gas development project in that frontier area.
We're extremely pleased with the success of our exploration program in eastern
Indonesia."

The Vorwata gas field is approximately nine miles from the Weriagar Deep gas
field discovered by ARCO and its partners in 1994. Five of the earlier wells in
the Weriagar Deep structure have tested at cumulative flow rates as high as 110
mmcf/d. Subsequent appraisal wells in this field, Weriagar Deep No 6, No.7 and
No.8, were tested at cumulative rates of 36 mmcf/d, 34 mmcf/d, and 34 mmcf/d
respectively in Jurassic and Paleocene formations.

Codron said that at Pertamina's request and consistent with other LNG projects
in Indonesia, ARCO has engaged the Dallas-based petroleum engineering consulting
firm of DeGolyer & McNaughton to estimate reserves recoverable from the Weriagar
and Berau blocks. ARCO expects to make an announcement concerning the reserves
and the D&M findings very soon, after consultation with Pertamina.

Partners in the Berau block are ARCO (48%), Occidental Berau of Indonesia, Inc.
(22.856%), Nippon Oil Exploration (Berau) Ltd. (17.144%), and KG Berau
Petroleum, Ltd. (12%). ARCO holds an 80% interest in the Weriagar block in
partnership with KG Weriagar Petroleum, Ltd.'s 20% interest. 

ARCO is the operator of both blocks through its Atlantic Richfield Berau, Inc. 
and Atlantic Richfield Weriagar Inc. subsidiaries.

SOURCE

CONTACT: Media: Albert Greenstein, 213-486-3384 or Frank Kryza,
972-509-4345, or Investors: Steve Enger, 213-486-1811, all of ARCO,
http://www.arco.com/

END