Unocal Will Take $14 Million in Charges

Unocal Corp., which explores for oil in the U.S. and Asia, will take about $14 million, or 6 cents a share, in second-quarter charges because efforts to develop two deep-water wells in the Gulf of Mexico were not successful. About $3.7 million, or 2 cents a share, of the second-quarter charge is for Unocal’s Nag el Madamud well, which did not produce enough oil to justify the expense of pumping there, the company said. The remaining $10.5 million, or 4 cents a share, is for the Bowshock well, which was dry. According to the average estimate of analysts polled by First Call Corp., El Segundo-based Unocal had been expected to earn 13 cents a share for the second quarter; the company earned 26 cents a share for the same period last year. Unocal said it will take an additional charge of $1.24 million, or about a penny a share, in the third quarter for Bowshock well costs. Unocal is expected to make 23 cents a share for the third quarter. Unocal shares fell $1.81 to close at $41.56 on the New York Stock Exchange.