What is the significance of the reported increase in proved reserves?

The increase in proved reserves from 2.98 billion BOE in 2008 to 3.23 billion BOE in 2009 indicates that Occidental Petroleum has successfully added to its resource base. For investors, this means a larger volume of oil and gas that can be economically produced in the future, supporting long-term production, cash flow, and company valuation.

What does 'preliminary proved reserves' mean?

Preliminary proved reserves are estimates of the amount of oil and natural gas that geological and engineering data demonstrate, with reasonable certainty, to be recoverable in future production operations from known reservoirs under existing economic and operating conditions. 'Preliminary' suggests these figures are subject to final review and potential adjustments before being fully finalized in official company reports.

How does this reserve increase impact Occidental Petroleum's stock?

An increase in proved reserves is generally viewed positively by the market. It signals to investors that the company has valuable assets that can generate future revenue and profits. This can lead to increased investor confidence and potentially a positive impact on the stock price, although other market factors also influence stock performance.

Where can I find more detailed information about these reserves?

The full text of the press release announcing these preliminary proved reserves is attached to this 8-K filing as Exhibit 99.1. Investors seeking more detailed operational or geographical breakdowns would typically look to the company's subsequent annual reports (10-K) or investor presentations for more comprehensive reserve data and analysis.

OXY/OXY-WT 8-K SEC Disclosure

Summary

Occidental Petroleum Corporation (OXY) announced on February 3, 2010, significant growth in its proved reserves. The company reported preliminary proved reserves of 3.23 billion barrels of oil equivalent (BOE) as of the end of 2009. This represents an increase from the 2.98 billion BOE reported at the end of 2008, indicating successful exploration and development activities. This substantial reserve addition is a key positive development for investors, suggesting future production growth and a strengthened asset base. The increase highlights OXY's ability to add to its resource base, which is crucial for long-term value creation in the oil and gas industry. Investors should view this as a signal of the company's operational success and its potential for enhanced future cash flows and profitability.

Key Highlights

1Preliminary proved reserves increased to 3.23 billion barrels of oil equivalent (BOE) as of year-end 2009.
2This represents a growth from 2.98 billion BOE reported at the end of 2008.
3The increase in proved reserves signifies successful exploration and development efforts by Occidental Petroleum.
4A larger reserve base supports future production potential and long-term asset value.
5This reserve growth is a positive indicator of the company's operational performance and resource management.
6The information was disclosed via a press release filed as an exhibit to the 8-K.

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Corporate Update (Feb 3, 2010)

Summary

Key Highlights

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