California Resources has struck a deal with Chevron to buy the remaining working, surface and mineral interests of the Elk Hills field in the San Joaquin Basin of California. The company will pay $900 million for all or part of the assets that are still producing oil from its existing wells at the Elk Hills, which is located about 35 miles southeast of Modesto. "Acquiring sole ownership of such a prolific field is an ideal use of proceeds from our recent midstream joint venture transaction, adding both immediate production and cash flow, while providing for quick synergies and tremendous long-term development opportunities", said Todd Stevens, California Resources' CEO.
California Resources has struck a deal with Chevron to buy the remaining working, surface and mineral interests of the Elk Hills field in the San Joaquin Basin of California. The $460m acquisition sees California Resources consolidate sole ownership of the 47,000 acre asset. "Acquiring sole ownership of such a prolific field is an ideal use of proceeds from our recent midstream joint venture transaction, adding both immediate production and cash flow, while providing for quick synergies and tremendous long-term development opportunities", said Todd Stevens, California Resources' CEO.