Pioneer to sell Hugoton, Barnett assets in separate deals

Pioneer Natural Resources Co., Dallas, has agreed to sell all of its assets in both the Hugoton field to Linn Energy LLC, Houston, and the Barnett shale to an undisclosed private buyer for total cash proceeds of $495 million.

The Hugoton transaction, effective July 1, involves the exchange of all of PNR’s interests in the field, including 235,000 net acres, its 1,200 producing oil and gas wells, its 51% interest in the Satanta gas processing plant, and other associated infrastructure, to Linn for $340 million.

Linn says it has identified 180 future drilling locations and 150 recompletion opportunities in the assets.

Net production from Hugoton averaged 6,600 boe/d of gas and natural gas liquids during the first half. The deal is expected to close by the end of the third quarter.

Mark E. Ellis, Linn chairman, president, and chief executive officer, commented on the deal: “Following our acquisition from BP in 2012 (OGJ Online, Feb. 28, 2012); this year's announced trade with ExxonMobil (OGJ Online, May 21, 2014); and today’s announcement with [PNR]; Linn will become the largest producer in the field and will have pro forma production in the basin of approximately 275 MMcfed and two natural gas processing plants with capacity of 690 MMcfed.”

The Barnett transaction, effective Aug. 1, involves the exchange of all of PNR’s assets in the play to an undisclosed private company for $155 million.

Net production from Barnett averaged 10,300 boe/d of oil, NGL, and gas during the first half. The transaction also is expected to close by the end of the third quarter.

Scott D. Sheffield, PNR chairman and chief executive officer, commented on both deals: “The sale of these assets will allow us to strategically redeploy capital to our core, oil-related Spraberry-Wolfcamp assets in the Permian basin of West Texas where we are successfully transforming the substantial resource potential we delineated in 2013 into strong production growth.”

Related Articles

Christie calls for N. American energy system improvements

09/05/2014 Mexico, Canada, and the US will need to significantly increase investments in energy systems if they expect to achieve the full benefits of a North...

MARKET WATCH: Crude oil experiences week-long ‘bumpy ride’

09/05/2014 The crude oil market was taken on a “bumpy ride” down a rocky road for much of this week, according to a commodities research note from Barclays Re...

Devon Canada files with AER for Walleye oil sands project

09/05/2014

Devon Canada Corp. has submitted applications with Canada’s Alberta Energy Regulator for its Walleye steam-assisted gravity drainage project.

AU Energy to acquire Tullow Netherlands unit

09/05/2014 AU Energy BV, a subsidiary of Mercuria Energy Group Ltd., has agreed to acquire Dutch operated and nonoperated L12/L15 block interests and nonopera...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected