Pioneer to Purchase Additional Interests in Two Onshore U.S. Core Areas
Pioneer Natural Resources has signed agreements with two parties for the purchase of additional assets in two of its U.S. onshore core areas, the Permian Basin and South Texas, for a total purchase price of approximately $177 million. Pioneer is purchasing approximately 70 million barrels of substantially undeveloped proved oil equivalent reserves with daily production of approximately 1,800 barrels of oil equivalent (BOE) and an estimated 800 undrilled locations. The transactions are expected to close within 30 days.
Pioneer estimates that it will invest approximately $400 million over the next five years to develop the acquired proved reserves, accelerating the pace of drilling in each of these two core areas beginning later this year. The Company expects that production from the acquired assets could exceed 10,000 BOE per day upon full development of the proved reserves.
Pioneer's Chairman and CEO, Scott D. Sheffield, stated, "We
already own a minority interest in more than 80% of the producing
wells and development locations included in these acquisitions and are
very pleased to add these low-risk assets to our onshore portfolio.
These transactions provide new opportunities that are an excellent fit
with our existing assets allowing us to leverage our expertise,
consistent with our long-standing core area acquisition strategy."
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