FIELD ACTIVITIES - ARNIE'S TOP 1 LISTED / CanOxy at Buffalo Hills
CANADIANOXY PROCEEDS WITH DEVELOPMENT OF BUFFALO OIL FIELD
CALGARY, Sept. 21 /CNW/ - Canadian Occidental Petroleum Ltd. (CXY-TSE,
ME, AMEX) announced today that it is proceeding with development of the
Buffalo oil field on Block WA-260-P located approximately 560 km northwest of
Darwin, in Australian waters. CanadianOxy has a 50% interest in the
development which is operated by Broken Hill Proprietary Company Ltd. (BHP).
The field was discovered in October 1996 and contains approximately 22
million barrels of proved and probable reserves. This will support peak
production of approximately 40,000 barrels gross per day. Exploration of other
prospects on 855,000 acre WA-260-P is ongoing.
Prompt appraisal and development scoping has enabled rapid commercial
development, with first oil scheduled for late 1999. Buffalo will be developed
using a fixed unmanned wellhead platform linked to a leased Floating
Production Storage and Offloading System. The expected gross capital cost of
the development is approximately US $88 million.
Commenting on the development, Victor Zaleschuk, President and CEO said,
''The development of the Buffalo field gives CanadianOxy a new source of
production and cash flow in this stable and prospective part of southeast
Asia. Buffalo Field also provides us with the basis for further exploration of
the region from a position of increasing knowledge and strength.''
CanadianOxy is an independent, Canadian based global energy and chemicals
company. Core business activities include the exploration, development,
production and marketing of crude oil and natural gas. CanadianOxy is Canada's
second largest oil producer with a daily output of approximately 240,000
barrels of oil equivalent.
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For further information: Kevin Finn, Director, Corporate Communications
and Investor Relations, (403) 234-1932
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