Occidental Petroleum (OXY) announced the purchase of properties in the Williston Basin that have exposure to the Bakken and Three Forks formation.
Occidental Petroleum is paying $1.4 billion for 180,000 net acres in North Dakota. The company reported that the properties have current production of 5,500 barrels of oil equivalent (BOE) per day. The company estimates that the acreage has net risked reserve exposure of 250 million BOE.
Occidental Petroleum said that after the sale the company will have 200,000 net acres in the Williston Basin that is prospective for the Bakken Shale and production of 6,000 BOE per day. The company expects to increase this production to a minimum of 30,000 BOE per day by 2015.