Atlantic Canada

Production

Hibernia Chevron holds a 26.9 percent nonoperated working interest in the Hibernia Field that comprises two key reservoirs, the Hibernia and Ben Nevis Avalon. Average total daily crude oil production in 2010 was 154,000 barrels (28,000 net).

Development

Hebron
Chevron holds a 26.6 percent nonoperated working interest in the planned Hebron Field development located offshore
the province of Newfoundland and Labrador. This heavy-oil field is estimated to contain between 400 million and 700 million of
potentially recoverable barrels. A concrete gravity-base platform is planned to develop the field using directional drilling techniques. The FEED phase commenced in third quarter 2010, and the project has an expected economic life of 30 years. At the end of 2010, proved reserves had not been recognized for this project.

Hibernia Southern Extension (HSE)
The HSE development is expected to stem the production decline from the Hibernia Field. Chevron has a 23.6 percent nonoperated working interest in the unitized HSE areas of the Hibernia Field, with the Newfoundland and Labrador government’s energy corporation acquiring a 10 percent working interest in February 2010 as part of the project approval conditions. The development of these unitized areas requires the drilling of producing wells from the existing Hibernia concrete gravity-base platform and subsea drilling of supporting injection wells. Regulatory, federal and provincial government approval of the development plan was received in late 2010, with further government approval of required agreements received in early 2011. The project was subsequently approved by the joint venture. First production from the HSE unitized area was achieved in second quarter 2011. At the end of 2010, proved reserves had not been
recognized for the HSE unitized blocks.

Exploration

Orphan Basin
Chevron operates and holds a 50 percent interest in an Orphan Basin exploration license totaling approximately 1.5 million acres (6,040 sq km). As of early 2011, Chevron has drilled two exploration wells in the Orphan Basin and is continuing to assess plans for further exploration. Drilling operations on the second Orphan well were completed in mid-2010, and the water depth, at 8,537 feet (2,602 m), set a new record for deepwater wells drilled in Canada.

Labrador
Planning for a seismic program is under way at the 100 percent owned and operated Exploration License 1109, totaling 574,000 acres (2,323 sq km) and located approximately 75 miles (121 km) offshore Labrador. At the end of 2010, proved reserves had not been recognized for either of these exploration prospects.