"The sale of the shelf assets is the final step in our announced strategy to divest of lower-growth, shorter-lived properties and focus on higher-impact opportunities," said Dave Hager, Kerr-McGee chief operating officer. "Our remaining oil and natural gas portfolio is weighted toward longer-life, less capital-intensive properties where we have a growing inventory of low-risk development projects. Upon completion of this transaction, Kerr-McGee's property portfolio will be well positioned to deliver consistent, repeatable per-share growth from our assets, which include two large natural gas resource plays in the Rockies, attractive infrastructure in the deepwater gulf and a growing inventory of high-potential exploratory prospects."
The divested properties are located in the Gulf of Mexico in waters that are typically less than 1,000 feet deep, spanning from near Corpus Christi, Texas, on the west to Mobile, Ala. on the east. Net production from the divestiture properties, which remains restricted as a result of hurricanes Katrina and Rita, currently approximates 25,000 barrels of oil equivalent (BOE) per day, which represents approximately 10% of the company's overall daily production. There are approximately 500 wells and approximately 100 fields included in this sale.
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