Pioneer announced that it was initiating a process to divest these three non-strategic Canadian properties late last year. As of the effective date, the properties' net proved reserves were estimated to be approximately 9 million barrels oil equivalent (BOE) and current net production is averaging approximately 3,000 BOE per day. Tristone Capital acted as Financial Advisor for this transaction with TD Securities as Lead Strategic Advisor and Scotia Capital as Strategic Advisor.
Scott D. Sheffield, Pioneer's Chairman and CEO, stated, "We had strong interest in the divestiture package and are very pleased with the sales price. Combined with our excess cash flow and proceeds from the volumetric production payment transactions we closed earlier this year, the proceeds significantly enhance our financial flexibility. By divesting these non-strategic properties, our Canadian team can now focus all of their efforts on increasing the value of our remaining core areas."
Pioneer is retaining its core areas in Canada, the Chinchaga natural gas and the Horseshoe Canyon coalbed gas fields, where it has an extensive inventory of drilling locations. The Company recently completed its largest-ever winter drilling campaign in Canada, drilling 56 wells. During the summer drilling season, Pioneer plans to drill up to 100 wells to assess the potential of its extensive Horseshoe Canyon coalbed acreage position.
Most Popular Articles