Pioneer Expands Position in Raton Basin
Pioneer Natural Resources has entered into an agreement with Petrogulf Corporation to acquire an interest in approximately 30,000 net acres in the Raton Basin for $205 million, before typical closing adjustments. The acquisition is expected to close during the fourth quarter of 2007 and is subject to customary closing conditions.
A majority of the acquisition value is derived from approximately 9,800 net acres immediately south of Pioneer's Sangre de Cristo Unit. Pioneer estimates that this acreage holds approximately 124 billion cubic feet (Bcf) of potential coal bed methane ("CBM") reserves, consisting of approximately 95 Bcf of estimated proved reserves and an additional 29 Bcf of resource potential. Current net production from the producing properties being acquired is 10 million cubic feet per day, and the acquisition includes more than 110 potential CBM drilling locations.
"This acquisition further enhances our strong position in the Raton Basin at an attractive cost and with significant upside to expand the proved reserves through additional step-out drilling," stated Scott Sheffield, Chairman and CEO.
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Company: Petrogulf Corporation more info
- Pioneer Expands Position in Raton Basin (Jul 30)