Pioneer Natural Resources seeks merger with Parker & Parsley

Pioneer Natural Resources Co., Dallas, has contacted the Securities and Exchange Commission proposing a merger between Pioneer, Pioneer Natural Resources USA Inc., and 46 Parker & Parsley limited partnerships. The merger would enable Pioneer to acquire additional interests in Spraberry field.

Apr 18th, 2001


By the OGJ Online Staff

HOUSTON, Apr. 18 -- Pioneer Natural Resources Co., Dallas, Tex., has contacted the Securities and Exchange Commission proposing a merger among Pioneer, Pioneer Natural Resources USA, Inc., and 46 Parker & Parsley limited partnerships.

Pioneer Natural Resources USA is a subsidiary of Pioneer Natural Resources. Midland-based Parker & Parsley Co. merged with Mesa Inc. in 1997 to form Pioneer Natural Resources Co.

If approved, Pioneer anticipates closing the mergers during the third quarter.

If the limited partners of those partnerships approve the mergers, Pioneer will acquire additional interests in wells in the Spraberry field in the Permian basin, a core area for Pioneer.

The mergers would allow Pioneer to consolidate Spraberry operations and reduce production costs.

Each partnership approving the proposals would merge with Pioneer USA, and the partnership interests of each such partnership would be converted into the right to receive cash and Pioneer common stock.

Pioneer has set no minimum number of partnerships that must participate in order to complete any of the mergers. Pioneer USA is the managing general partner of the partnerships.

The amount Pioneer will pay for the partnership interests will be based on the partnerships' reserves values and net working capital as of Mar. 31.

Pioneer estimates its offer will be $102 million to the unaffiliated limited partners. Cash would be paid for 25% while 75% would be paid in shares of Pioneer common stock.

Pioneer USA will consider offers from third parties to purchase any partnership or its assets.

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