hugoton

Oxy owns a large concentration of gas reserves, productino interests and royalty interest in the Hugoton area of Kansas and Oklahoma.

Also, Oxy has more than 28,000 net acres in the Piceance Basin in western Colorado. During 2006, Oxy drilled 43 development wells and started operation of a newly constructed gas processing facility.

Occidental continues to maximize production from this mature asset through the innovative application of 3-D seismic technology as it targets unexplored deeper formations and new opportunities in producing reservoirs. Occidental’s targeted use of 3-D seismic has significantly increased its drilling success rate. Occidental is enhancing oil production in this region by waterflooding some of the deeper oil reservoirs to optimize recovery. Natural decline rates in the shallow gas zones have been partially offset by infill drilling, recompletions and fracture stimulation. Occidental is the second largest oil producer and fourth largest gas producer in Kansas.

A study by independent consultants concluded that Occidental’s Hugoton operation was in the first quartile of low cost operators among a group of participating companies operating in the Hugoton field. This long-lived asset generates steady annual income and cash flow.

Related Link:
Hugoton Technology

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Related Link:
Hugoton Technology