PNR sells Spraberry properties to Pioneer Southwest

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.

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.

More in Companies