DALLAS, TEXAS, 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 74,000 gross acres in the Barnett
Shale for $150 million, before normal closing adjustments. The acquisition is
expected to close during the fourth quarter of 2007 and is subject to other
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 acreage being acquired holds 81 billion cubic
feet gas equivalent (BCFE) of net proved reserves and has total net resource
potential of 480 BCFE. Net production from the properties is currently
averaging 15 million cubic feet per day. The acreage being acquired includes
more than 300 potential drilling locations, with most locations covered by 3-D
seismic data. Essentially all of the potential gas reserves and drilling
locations are on approximately 37,000 gross acres in Parker County where
Pioneer will be the operator and own an average working interest of
approximately 70%. The acquisition also includes approximately 37,000 gross
acres in expansion areas of the Barnett Shale play.
This acquisition will bring Pioneer's total holdings in the Barnett Shale
play to approximately 87,000 gross acres, with more than 450 total drilling
locations in established areas of the play. The Company entered the play
earlier this year and has participated in five successful wells to date. The
Company plans to ramp up drilling through 2008.
"We are encouraged by the early drilling results from our entry into the
Barnett Shale. This acquisition is a significant step towards achieving our
goal of building a core position in this play," stated Scott Sheffield,
Chairman and CEO.
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
"potential," "resource potential," "potential reserves," "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, Dallas
Investors: Frank Hopkins/Scott Rice, 972-444-9001 or Media and Public Affairs:
Susan Spratlen, 972-444-9001