By OGJ editors
HOUSTON, Aug. 16 -- Occidental Petroleum Corp. has agreed to buy oil and gas properties, mainly in California and Texas, from Plains Exploration & Production Co., Houston, and certain subsidiaries, for $865 million. The transaction is expected to close by Sept. 30.
The properties include interests in Asphalto, Buena Vista, and Mt. Poso fields in California's San Joaquin Valley, Sansinena field near Plains E&P's Montebello field in the Los Angeles basin, Pakenham field in West Texas, and several minor properties.
Plains E&P's independent reserves engineers estimated these producing properties as of Dec. 31, 2005, had proved reserves of 45 million boe, and the properties generate sales volumes of about 7,200 boe/d of oil.
Plains E&P will use the proceeds for debt reduction and to continue repurchasing shares.