Occidental Petroleum Corporation announced the acquisition of oil and gas assets from Plains Exploration and Production Company for $865 million.

Occidental estimates that the acquisition will add proved reserves of approximately 56 million barrels of oil equivalent. The principal properties being acquired are adjacent to Occidental's existing operations in California and the Permian Basin in West Texas.

"This transaction is consistent with our U.S. strategy of focusing on our core geographic areas in California and Texas," said Dr. Ray R. Irani, Chairman, President and Chief Executive Officer of Occidental Petroleum Corporation. "We plan to apply the techniques we have used successfully to enhance production in our other U.S. operations. We expect to substantially increase the current production rate of 8,900 net barrels of oil equivalent per day within the next few years."

The transaction, which is accretive to earnings and cash flow and will be financed from cash on hand, is expected to close on or about October 1, 2006.