Kerr-McGee to Sell Select U.S. Onshore Properties in Texas and Oklahoma

Kerr-McGee says it has signed a sales agreement with Encore Acquisition Company for select oil and natural gas properties in the Permian Basin in western Texas and the Anadarko Basin in Oklahoma, for gross proceeds of approximately $104 million in cash. The transaction is subject to customary closing conditions and is expected to close in November. Kerr-McGee expects to use all net proceeds of approximately $69 million to reduce debt.

The properties are located in the Levelland-Slaughter, Howard Glasscock, Nolley-McFarland and Hutex fields in western Texas and the Oakdale, Calumet and Rush Springs fields in western Oklahoma. The fields are part of Kerr-McGee's previously announced plan to high grade its oil and natural gas portfolio by divesting of selected lower-growth properties. The properties currently are producing a total of approximately 1,300 barrels of oil equivalent per day. Approximately 94% of this volume is oil.