ARCO, BURLINGTON RESOURCES INC. IN DISCUSSIONS OVERECUADOR OPERATIONS.

HOUSTON--(BUSINESS WIRE)--Aug. 2, 1999--

Los Angeles-based ARCO (NYSE:ARC) and Houston-based Burlington Resources Inc. (NYSE:BR) announced today that they have entered into exclusive discussions related to the sale of ARCO's Ecuador operations and other ARCO-held Latin American exploration

The two companies said that any final agreement would require the approvals of their respective Boards of Directors and the governments involved. The companies are hoping to complete negotiations and obtain Board approvals by the end of August 1999.

In Ecuador, ARCO Oriente Inc. recently started production from Villano, a 200 million barrel field of 21-degree crude oil which was discovered in 1992. ARCO has a 60% interest in the Ecuador Block 10 service contract, which includes the Villano field, the most significant property in the proposed sale package. Gross production from the field is estimated to reach 40,000 barrels of oil per day by year-end.

The package also includes Block 24 in Ecuador, which was awarded to ARCO under a Participation Contract in 1998 for a 4-year exploration period, with an optional 2-year extension.

Burlington Resources is engaged in the exploration, development, production and marketing of oil and gas. The Company conducts activities in several strategic areas, domestically and internationally, including the San Juan Basin of New Mexico, the deepwater province of the Gulf of Mexico, the East Irish Sea, the North Sea, North Africa and Latin America. BR ranks first among U.S. independent oil and gas companies in terms of proved U.S. reserves.

ARCO is a worldwide integrated hydrocarbons corporation with operations encompassing all aspects of the oil and gas business: exploration, production, and marketing of crude oil, natural gas and natural gas liquids, and the refining, marketing and transportation of petroleum products. In addition to its Ecuador operations, ARCO has significant activities on the North Slope of Alaska and in the Gulf of Mexico, Venezuela, the Permian Basin, China, Indonesia, the North Sea and North Africa.

For further information: Burlington Resources: John Carrara 713/624-9548 or website: http://www.br-inc.com. ARCO: Investors -- Eden Warner 213/486-1511; Media: Linda Dozier 213/486-3384 or website: http://www.arco.com.

Forward-looking Statements

This press release may contain projections and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Any such projections or statements reflect the Company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such projections will be achieved and actual results could differ materially from those projected. A discussion of important factors that could cause actual results to differ materially from those projected is included in the Company's periodic reports filed with the Securities and Exchange Commission.