Occidental Petroleum said June 10 it agreed to sell what it considers non-strategic acreage in southern Delaware Basin in Reeves and Ward counties to an affiliate of Colgate Energy Partners for $508 million. Proceeds from the sale will be used for debt reduction. Vicki Hollub, Oxy president and CEO, said, “This transaction brings our post-Columbia divestiture total to over $1.3 billion of the planned $2 billion to $3 billion. Since August 2019 we have divested more than $9 billion of assets.”
The transaction, expected to close in 2021Q3, includes about 25,000 acres with current production of about 10,000 boed from 360 active wells. Midland-based Colgate Energy is a private exploration and production company focused on Delaware Basin. This deal comes just days after Colgate acquired 22,000 net acres with 17,000 boed from Delaware Basin driller Luxe Energy.