Pioneer Sells Argentina Operations for $675 Million
Pioneer Natural Resources has entered into a purchase and sale agreement with Apache Corporation to sell all of Pioneer's operations in Argentina for cash proceeds of approximately $675 million. The transaction, which broadens Pioneer's previously announced plan to divest its non-operated Tierra del Fuego assets in southern Argentina, is expected to close during the first quarter or early second quarter. The agreement is subject to customary closing conditions.
Pioneer expects to utilize the proceeds from the divestiture to reduce short-term debt.
Production from the Argentina assets was approximately 32,500 barrels of oil equivalent per day during 2005 and was expected to contribute a similar level in 2006. As of January 1, 2006, the properties' net proved reserves were estimated to be approximately 101 million barrels of oil equivalent.
"The sale of our Argentina assets is consistent with the strategic
initiatives announced last September to deliver enhanced value to our
shareholders," said Scott D. Sheffield, Chairman and CEO. "It will
allow us to reallocate capital to high-return North America
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