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LOS ANGELES, Sept. 25, 2008 -- Occidental PetroleumCorporation today announced the signing of a definitivepurchase and sale agreement with Plains Exploration & ProductionCompany to purchase all of PXP's interests in the PermianBasin of West Texas and New Mexico and Piceance Basin of Colorado for$1.25 billion.
Current production (net to Occidental) from the properties beingacquired is approximately 4,300 barrels of liquids and 52 million cubicfeet of gas per day; for a total of 13,000 barrels of oil equivalentper day.
The properties have approximately 92 million barrels of oilequivalent of proved reserves (net to Occidental); of whichapproximately 69 percent are natural gas and 45 percent are developed. In the Piceance basin in the first half of 2008, Occidental produced inexcess of 50 million cubic feet a day.
Occidental expects this to growto at least 200 million cubic feet a day in 2010, including thisacquisition. Occidental's net acreage position in the Piceance Basinnow totals 129,000 acres.
In a transaction that was announced last year, Occidental acquired a50-percent interest in these properties, and is purchasing theremainder in this transaction. Closing of this transaction is expectedin the fourth quarter and is subject to government approvals.