REPSOL REPORTS A NEW GAS DISCOVERY IN EGYPT

11/20/98

REPSOL REPORTS A NEW GAS DISCOVERY IN EGYPT

Repsol has announced the completion of a discovery which tested at 19.1 million cubic feet (MMcf) per day of natural gas and 732 barrels per day of 53.9 degreee API gravity condensate. The Nakhaw-1X had the highest test rate to date of any discovery on Repsol�s Khalda Offset Concession, which is adjacent to its producing Khalda Concession in Egypt�s Western Desert.

Repsol is the operator and has a 50% contractor interest, being 40% of Apache and 10% of Novus, in the Khalda Offset and Khalda concessions. Khalda is producing oil at the record rate of 35,000 barrels per day. Repsol and its partners recentyly implemented a two-year program designed to accelerate oil production on the concession. Gas from Khalda is expected to begin production next year upon completion of a 225 Km-long pipeline. The Egyptian government has signed a 25 year take-or-pay gas contract with Repsol and its partners to supply gas to the nation�s natural gas grid at the initial rate of 200 MMcf per day.