Pioneer Closes Sale of Non-Strategic Canadian Properties
Pioneer Natural Resources' Canadian subsidiary has closed the sale of its Martin Creek, Conroy Black and Lookout Butte oil and gas properties to Ketch Resources Ltd. for proceeds after closing adjustments of approximately $199 million.
Pioneer expects to recognize an after-tax gain associated with the Canadian asset sale of approximately $75 to $80 million based on the Company's intent to create a repatriation plan that qualifies for the provisions of the American Jobs Creation Act of 2004. In accordance with the provisions of Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," Pioneer will report the results of operations of the Canadian properties sold, including the gain on disposition, as discontinued operations in its second quarter results.
Pioneer retained its core areas in Canada, the Chinchaga gas and
the Horseshoe Canyon coalbed gas fields. At Chinchaga, the Company
drilled 56 wells during its winter drilling campaign and has an
extensive inventory of locations remaining to drill in future years.
Beginning in June, Pioneer plans to drill a minimum of 80 wells to
assess the potential of its extensive Horseshoe Canyon coalbed acreage
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