HOUSTON, Dec. 17 (UPI) -- Texas-based PXP is selling some of its oil and gas properties.
Plains Exploration & Production Co. announced several purchase and sale agreements to sell oil and gas properties for about $1.75 billion to a subsidiary of Occidental Petroleum Corp. and XTO Energy Inc.
Occidental said under the signing it will purchase 50 percent of two properties for $1.55 billion. It will get 50 percent and operating control of PXP's interests in oil and gas properties located in the Permian Basin, West Texas and New Mexico.
It will also get 50 percent of PXP's interests in oil and gas properties located in the Piceance Basin in Colorado. There, PXP will remain the operator.
"This acquisition is consistent with our strategy of focusing on our Permian Basin core area and continuing to build a meaningful position in the Piceance Basin," said Ray R. Irani, chairman and chief executive officer of Occidental. "Currently, we produce approximately 40 million cubic feet per day of gas in the Piceance Basin; together with our share of the new assets, we will have 67 million cubic feet per day of production. We look forward to 20 percent year-over-year growth from the combined Piceance assets."
PXP also announced its board approved increasing its share repurchase authorization to $1.0 billion. Additionally, the Board approved a $1.15 billion 2008 capital budget.
The transaction is expected to close in the first quarter once it is approved by the government.