Occidental Petroleum has announced the signing of a definitive purchase and sale agreement with Plains Exploration & Production (PXP) to purchase all of PXP’s interests in the Permian Basin of West Texas and New Mexico and Piceance Basin of Colorado for $1.25 billion.
Current production from the properties being acquired is approximately 4,300 bbl of liquids and 52 million cu ft of gas per day, for a total of 13,000 bbl of oil equivalent per day. The properties have approximately 92 million bbl of oil equivalent of proved reserves, of which approximately 69% are natural gas and 45% are developed.
Oxy buys Permian Basin, Piceance Basin acreage
In the Piceance basin in the first half of 2008, Occidental produced in excess of 50 million cu ft/day. Occidental expects this to grow to at least 200 million cu ft/day in 2010, including this acquisition. Occidental’s net acreage position in the Piceance Basin now totals 129,000 acres.
In a transaction that was announced last year, Occidental acquired a 50% interest in these properties and is purchasing the remainder in this transaction. Closing of this transaction is expected in the fourth quarter and is subject to government approvals.