LOS ANGELES, April 19, 2000 (PRIMEZONE) -- Occidental Petroleum Corporation (NYSE:OXY) said today it has completed its acquisition of all of the common interest in the Altura Energy Ltd. partnership, the largest oil producer in Texas.
The acquisition further expands Occidental's holdings in the United States, where it is now the nation's largest independent oil and gas producer. Occidental focuses its oil and gas operations in three core regions: the United States, the Middle East and Latin America.
Dr. Ray R. Irani, Occidental's chairman and chief executive officer, said, "The acquisition of this world class asset fits very well with our strategy to increase profits by focusing on large core assets with competitive cost structures. Altura is the largest producer and the lowest cost producer in the prolific Permian Basin in West Texas. This acquisition will not only produce a strong stream of earnings and cash flow immediately, but will continue to do so for more than 25 years."
As a result of the acquisition, Occidental's worldwide oil and gas production is increasing by approximately 135,000 barrels of oil equivalent per day. Occidental's worldwide production is expected to increase by 20 percent to an average of 510,000 barrels of oil equivalent per day this year versus 425,000 barrels per day in 1999.
Proved reserves at Altura are 850 million barrels of oil equivalent and probable and possible reserves are 230 million barrels of oil equivalent. This acquisition will bring Occidental's proved reserves to 2.2 billion barrels of oil equivalent.
Note: This press release may contain forward-looking statements that reflect management's expectations and are based upon data available at the time. Actual results are subject to future events and uncertainties that could materially impact performance.