Occidental Petroleum Hits Paydirt in California
Occidental Petroleum Corporation has made a significant discovery of oil and gas reserves in Kern County, California.
Occidental believes there are between 150 million and 250 million gross barrels of oil equivalent (BOE) reserves within the outlined area where Oxy has drilled six wells to date to delineate the discovery. The multi-pay zone discovery area, whose areal geological extent is still being defined, has both conventional and unconventional pay zones. The bulk of the discovery's producing zones are conventional oil and gas bearing formations.
Occidental's interest in the discovery area is approximately 80 percent. Approximately two-thirds of the discovery is believed to be natural gas.
"We believe this to be the largest new oil and gas discovery made in California in more than 35 years," said Dr. Ray R. Irani, Chairman and Chief Executive Officer of Occidental Petroleum Corporation.
"It is probable that there are additional reserves outside the defined area, and it is possible that structures of this type exist elsewhere in Oxy's 1.1 million net acre position in California. We plan to drill wells to exploit these opportunities over the next 5 to 10 years," Dr. Irani said.
Oxy is currently the largest natural gas producer and third-largest oil producer in the state of California, where the company has produced oil and gas for more than 50 years. Oxy's assets in the state include more than 7,500 active wells located in 90 fields, spanning 600 miles. Oxy's California proved reserves were 708 million BOE at year-end 2008 and represent approximately 24 percent of Oxy's worldwide reserves.
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