By OGJ editors
HOUSTON, Sept. 25 -- Occidental Petroleum Corp., Los Angeles, plans to pay Plains Exploration & Production Co. $1.25 billion for the 50% interest Oxy doesn't own in properties in the Permian and Piceance basins.
Oxy acquired half-interest in the properties earlier this year. Closing of the current purchase is expected in the fourth quarter.
Oxy plans to expand its Piceance basin production to at least 200 MMcfd in 2010, including this transaction, from more than 50 MMcfd in the first half of 2008. The purchase will bring Oxy's Piceance position to 129,000 acres.
Net production to Oxy from the properties being acquired is 4,300 b/d of liquids and 52 MMcfd of gas. The properties have 92 million boe of proved reserves, 69% gas and 45% developed, to Oxy.
