Occidental Petroleum Corp. has acquired 35,000 net acres in the Permian basin horizontal drilling play and expanded its enhanced oil recovery holdings in the basin through transactions with private sellers totaling $2 billion.
The acquired leasehold in Reeves and Pecos counties, Tex., includes 7,000 boe/d of net production, 72% oil, from 68 horizontal wells. The company estimated the acreage has at least 700 gross horizontal-drilling locations targeting Permian Wolfcamp A and B and Bone Spring strata.
The acquired acreage is near other Occidental development sites. It expands the company’s leasehold in the area to nearly 59,000 acres.
The acquired working interests in producing carbon-dioxide floods and related equipment increase Occidental’s ownership in several properties where the company is operator or an existing working interest holder.
The properties produce 4,000 boe/d, 80% oil. They have net proved-developed-producing reserves estimated at 25 million boe and total proved reserves estimated at 41 million boe.