CanadianOxy Sells Assets to Combat Low Prices
Canadian Occidental Petoleum Ltd., an independent global energy
and chemical company, sold oil and gas properties worth $370
million in order to take the bite out of low commodity prices, the
company said Wednesday. This brings CanadianOxy's 1998 property
sales to $630 million. The company did not disclose who bought the
properties. An additional $235 million of sales are expected before
the end of January 1999.
Properties in Canada and the United Kingdom were included in the
sale. The Canadian assets are located in northeast British
Columbia, west central Alberta, and northeast Alberta. These lands
produce 125 MMcf/d of gas and 6,000 b/d, and proved reserves total
290 Bcf of gas and 20 million barrels of oil annually. Undeveloped
land totals 660,000 net acres.
"By the time the last of these dispositions close in January
1999, our long-term debt will be about $1.9 billion, credit lines
will be replenished, and we'll be in good shape to weather
volatility in commodity prices," said Marv Romanow, CanadianOxy's
chief financial officer, "We will be drilling a number of prospects
in 1999 which could require significant follow-up capital. And if
this environment persists, we expect to see attractive
opportunities to add to our portfolio."
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