US independent Occidental Petroleum has entered into a definitive agreement to sell for $508 million certain non-strategic acreage in the Permian basin in the US to an affiliate of Colgate Energy Partners Ⅲ.The transaction, which is expected to close in this year's third quarter, includes approximately 25,000 net acres in the Southern Delaware basin in Texas that are adjacent to Colgate's existing position in Reeves and Ward counties.The assets have current production of approximately 10,000 barrels of oil equivalent per day from some 360 active wells."The acquisition of these assets in the core of the Southern Delaware basin is a transformational deal for Colgate that checks all of the boxes of our acquisition criteria," said Will Hickey, co-chief executive of Colgate."It is a great mix of low-decline production and high rate of return locations that will immediately compete for capital with our existing portfolio," he said. "Given the proximity to our current assets, we are confident that we can leverage our ongoing operations to maximise the value of this acquisition for our investors."
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