By OGJ editors
HOUSTON, Dec. 17 -- Occidental Petroleum Corp. signed a definitive purchase and sale agreement with Plains Exploration & Production to acquire certain properties for $1.55 billion.
Included in the acquisition is 50% of Plains E&P's working interests in oil and gas properties in the Permian basin, West Texas, and New Mexico. Oxy expects to be named the operator of all the assets currently operated by Plains E&P. Also, 50% of Plains E&P's working interests in oil and gas properties in Colorado's Piceance basin. Plains E&P will remain the operator and Oxy expects the properties to deliver multiyear production growth.
Currently, Oxy produces 40 MMcfd of gas in the Piceance basin. With its share of the newly acquired assets, Oxy will have 67 MMcfd of gas production.
Current production (net to Oxy) from the properties being acquired is about 13,500 boe/d. The Permian properties produce about 9,000 boe/d.
The Permian properties have 46 million boe of proved reserves (net to Oxy). The Piceance properties also have 46 million boe of proved reserves (net to Oxy).
This transaction is expected to close in first quarter 2008, subject to government approvals.
