DALLAS, November 6 /CNW/ - Pioneer Natural Resources Company (NYSE: PXD)
("Pioneer") today announced that it has entered into an agreement to acquire
an interest in approximately 44,000 gross acres in the Spraberry field in West
Texas for $90 million, before normal closing adjustments. Pioneer will operate
the acquired properties with an average 85% working interest. The acquisition
is expected to close during the fourth quarter of 2007 and is subject to
customary closing conditions. Pioneer plans to use a portion of the proceeds
from the previously announced master limited partnership initial public
offering and sale of its Canadian subsidiary to fund the acquisition.
Pioneer estimates that the acquired acreage holds 38 million barrels oil
equivalent (MMBOE) of net resource potential, consisting of 15 MMBOE of
estimated proved reserves and an additional 23 MMBOE of resource potential.
Approximately 20% of the proved reserves are developed with current net
production of 700 barrels oil equivalent per day. The acquisition includes
more than 600 potential drilling locations utilizing 40-acre spacing.
Pioneer Natural Resources Company is a large independent oil and gas
exploration and production company, headquartered in Dallas, Texas, with
operations in the United States, South Africa and Tunisia. For more
information, visit Pioneer's website at www.pxd.com.
Except for historical information contained herein, the statements in
this News Release about Pioneer Natural Resources Company are forward-looking
statements that are made pursuant to the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements and the
business prospects of Pioneer Natural Resources Company are subject to a
number of risks and uncertainties that may cause Pioneer's actual results in
future periods to differ materially from the forward-looking statements. These
risks and uncertainties include, among other things, volatility of commodity
prices, product supply and demand, government regulation or action, the costs
and results of drilling and operations, availability of drilling equipment,
Pioneer's ability to implement its business plans (including its plan to sell
its Canadian subsidiary and form a master limited partnership and offer
securities representing interests therein) or complete its development
projects as scheduled, access to and cost of capital, uncertainties about
estimates of reserves, quality of technical data and environmental and weather
risks. These and other risks are described in Pioneer's 10-K and 10-Q Reports
and other filings with the Securities and Exchange Commission.
Cautionary Note to U.S. Investors -- The SEC permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves
that a company has demonstrated by actual production or conclusive formation
tests to be economically and legally producible under existing economic and
operating conditions. Pioneer uses certain terms in this release, such as
"resource potential," "estimate," or other descriptions of volumes of reserves
potentially recoverable through additional drilling or recovery techniques
that the SEC's guidelines prohibit Pioneer from including in filings with the
SEC. These estimates are by their nature more speculative than estimates of
proved reserves and accordingly are subject to substantially greater risk of
being recovered by Pioneer.
A registration statement relating to the common units of Pioneer
Southwest Energy Partners L.P. has been filed with the Securities and Exchange
Commission but has not yet become effective. These securities may not be sold,
nor may offers to buy be accepted, prior to the time the registration
statement becomes effective. This communication does not constitute an offer
to sell or the solicitation of an offer to buy nor shall there be any sale of
these securities in any state in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws
of any such state or jurisdiction.
This offering of common units will be made only by means of a prospectus.
A copy of the prospectus, when available, may be obtained by submitting
requests to Citigroup Global Markets Inc., Attention: Prospectus Department,
Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220,
phone: 718-765-6732, fax: 718-765-6734; Deutsche Bank Securities Inc.,
Attention: Prospectus Department, 100 Plaza One, Jersey City, New Jersey
07311, phone: 800-503-4611, or email: firstname.lastname@example.org; or UBS
Securities LLC, Attention: Prospectus Department, 299 Park Avenue, New York,
New York 10171, phone: 212-821-3000.
For further information:
For further information: Pioneer Natural Resources Company Investors:
Frank Hopkins or Scott Rice, 972-444-9001 or Media and Public Affairs: Susan