LOS ANGELES, Jan. 3, 2000 (PRIMEZONE) -- Occidental Petroleum Corporation (NYSE:OXY)and EOG Resources, Inc. today announced they exchanged certain oil and gas assets that will further each company's programs to further focus exploration and production activities and achieve cost savings through operational synergies.
Occidental received producing properties and exploration acreage in its expanding California asset base, as well as producing properties in the western Gulf of Mexico near existing operations. The exchange increased EOG Resources' gas production and reserves in east Texas, where it already has a significant presence, and will add to its drilling portfolio in the Oklahoma panhandle.
Dr. Ray R. Irani, chairman and chief executive officer of Occidental, and Mark G. Papa, chairman and chief executive officer of EOG Resources, called the exchange a sound strategic move for both companies.
Dr. Irani said, "In addition to the cost savings we expect, the exchange provides us with significant growth opportunities in our California operations. This brings our California land position to approximately 800,000 acres, and we expect to conduct an active exploration program on this land over the next few years."
Papa said, "The properties in east Texas and Oklahoma complement our assets in each of these divisions and provide significant upside potential for our drilling program in 2000 and beyond in each area. Overall this transaction is expected to increase both earnings and cash flow."
Occidental received in the exchange:
-- Producing properties in the Sacramento Valley of
California that are currently producing approximately
12 million cubic feet of gas a day. EOG will retain
its oil properties in North Shafter.
-- Mineral rights to more than 700,000 acres in
California.
-- Producing properties in the western Gulf of Mexico that
are currently producing 26 million cubic feet of gas
equivalent per day, which are directly adjacent to
existing Occidental properties.
EOG received in the exchange:
-- Occidental's properties in east Texas that are
currently producing 33 million cubic feet of gas and
3,000 barrels of oil per day and are adjacent to
existing EOG properties.
-- Certain exploration rights in 312,000 acres in the
Oklahoma panhandle.
Occidental will retain certain interests in these
Properties.
Note: This press release contains forward-looking statements that reflect the expectations of the management of Occidental Petroleum and EOG Resources and are based on data available at the time. Actual results from the transactions described in this press release, including cost savings, upside potential and increased earnings and cash flow, are subject to certain events and uncertainties that could cause actual results to differ materially from managements' expectations.