Occidental Petroleum Corp. and EOG Resources Inc. said theyexchanged certain oil and gas assets to enhance each company’sfocus on exploration and production and achieve cost savingsthrough operational synergies. Occidental received producingproperties and exploration acreage in its expanding Californiaasset base, as well as producing properties in the western Gulf ofMexico near existing operations. The exchange increased EOGResources’ gas production and reserves in East Texas, where italready has a significant presence, and will add to its drillingportfolio in the Oklahoma panhandle.

“This brings our California land position to approximately800,000 acres, and we expect to conduct an active explorationprogram on this land over the next few years,” said Ray R. Irani,Occidental CEO.

“The properties in East Texas and Oklahoma complement our assetsin each of these divisions and provide significant upside potentialfor our drilling program in 2000 and beyond in each area,” said EOGCEO Mark G. Papa. “Overall, this transaction is expected toincrease both earnings and cash flow.”

Occidental received in the exchange producing properties inCalifornia’s Sacramento Valley that are currently producing about12 MMcf/d of gas. Occidental also gets mineral rights to more than700,000 acres in California and properties in the western Gulf ofMexico that are currently producing 26 MMcfe/d and are directlyadjacent to existing Occidental properties.

EOG gets Occidental’s properties in East Texas that arecurrently producing 33 MMcf and 3,000 barrels of oil per day andare adjacent to existing EOG properties. EOG also gets certainexploration rights in 312,000 acres in the Oklahoma Panhandle.

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