PNR sells Spraberry properties to Pioneer Southwest

By OGJ editors
HOUSTON, Sept. 2
-- Pioneer Natural Resources Co., Dallas, has sold oil and gas properties in the Spraberry field in West Texas to Pioneer Southwest Energy Partners LP for $171.2 million in cash. The transaction also includes “assignment” of certain 2009-13 commodity price derivative positions, said the announcement.

The properties have estimated proved reserves of about 18.9 million boe, of which 37% are proved developed reserves and 63% are proved undeveloped reserves. Production from the sold properties is currently about 1,300 boe/d, said the announcement. Of this amount, about 65% is oil, 20% is NGL, and 15% is gas.

Scott D. Sheffield, Pioneer chairman and chief executive officer, said this transaction recognizes that PSE plans a two-rig drilling program during the fourth quarter and that Pioneer owns 68% of PSE. The transaction effectively adds two rigs to the 10-12 rig drilling program Pioneer has planned in the Spraberry field for 2010 and “will increase our total well count next year” by about 50 wells to 300-350 wells, he said.

About 50% of Pioneer’s proved reserves are in Spraberry field.

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