Occidental Petroleum Corporation has completed the previously
announced acquisition of Vintage Petroleum, Inc. (NYSE:VPI). Under the terms of the merger agreement, Vintage shareholders will receive $20.00 per Vintage share in cash, plus 0.42 Occidental shares per Vintage share. As a result of this transaction, Occidental will issue
approximately 28 million shares of Occidental common stock and pay
approximately $1.4 billion in cash to former Vintage stockholders. As
previously announced, Occidental plans to implement, from time to time, a stock re-purchase program for 9 million Occidental shares in the open market or otherwise.
The acquisition of Vintage Petroleum will further enhance Occidental's holdings in its core areas in Latin America, California and the Middle East. Occidental has classified certain Vintage properties that account for production of approximately 19,000 barrels of oil equivalent per day and, according to estimates provided by Netherland, Sewell & Associates, Inc., yearend proved reserves of approximately 72 million equivalent barrels of oil as "assets held for sale." Occidental expects to close the sale of these assets in the second quarter 2006 and apply the proceeds to reduce the purchase price. Vintage's December 2005 production averaged more than 75,000 barrels of oil equivalent per day.
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