Nuevo Announces New Partners in Its Permit Offshore in Ghana

Nuevo Energy Company has added two new partners in its Accra-Keta Permit offshore the Republic of Ghana, West Africa, the Company announced today. The Korea National Oil Corporation and SK Corporation have combined to acquire a 25% interest in the 1.9-million-acre Accra-Keta Permit on a promoted basis. As a result of this transaction and the previous transfer of a 25% participating interest in this Permit, Nuevo will retain a 50% interest and operatorship in the Accra-Keta Permit. The transaction is subject to Ghanaian government approval. Terms of the transaction were not disclosed.

Nuevo began drilling its NAK #1 exploratory well in the Accra-Keta Permit on January 10, 2001. This well is located in approximately 1,100 feet of water and will be drilled to a total depth of 10,000 feet.

Nuevo's Chairman and CEO Doug Foshee stated, "We're very excited to bring two companies of the quality of Korea National Oil Corporation and SK Corporation into the Accra-Keta Permit. Combined with our earlier sale, this now concludes the marketing of interests in this Permit, with Nuevo retaining 50% and operations. Ultimately the proof will be in the drillbit results, but our progress so far tells me that our retooled exploration strategy is accomplishing its goals. Our technical assessments have reached the stage where we're now actively generating exciting exploration prospects that are attractive to others in the industry. Our exploration program will expose us to significant upside reserve potential over the next 12 months, and we're confident that we'll be able to add value to our shares through the drillbit."

Nuevo Energy Company is a Houston, Texas-based Company primarily engaged in the exploration for, and the acquisition, exploitation, development and production of crude oil and natural gas. Nuevo's principal domestic properties are located onshore and offshore California. Nuevo is the largest independent producer of oil and gas in California. The Company's international properties are located offshore the Republics of Congo and Ghana in West Africa and offshore and onshore the Republic of Tunisia in North Africa. To learn more about Nuevo, please refer to the Company's internet site at http://www.nuevoenergy.com.

This press release includes "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release, including without limitation, business strategies, estimated reserves and production volumes, plans and objectives of management of the Company for future operations, and capital expenditures are forward-looking statements. Although the Company believes that the assumptions upon which such forward-looking statements are based are reasonable, it can give no assurances that such assumptions will prove to have been correct. Important factors that could cause actual results to differ materially from the Company's expectations ("Cautionary Statements") and projections include volatility in oil and gas prices, operating risks, the risks associated with reserve replacement, competition from other companies and other factors set forth in the Company's Annual Report on Form 10-K filed with the SEC and incorporated herein. All subsequent written and oral forward-looking statements and projections attributable to the Company or to persons acting on its behalf are expressly qualified by the Cautionary Statements.