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CanadianOxy Sells Assets to Combat Low Prices

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."

John Norris

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