Pioneer adds to U.S. onshore assets with $177M purchase in Texas

Pioneer Natural Resources said June 28 that it has signed agreements to purchase additional assets in two of its U.S. onshore core areas, the Permian basin and South Texas.

The agreements, with two parties, are for approximately $177 million; the transactions expected to close within 30 days.

Pioneer said it is purchasing approximately 70 million barrels of substantially undeveloped proved oil equivalent reserves with daily production of some 1,800 barrels of oil equivalent and an estimated 800 undrilled locations, and will invest approximately $400 million over the next five years to develop the acquired proved reserves, accelerating the pace of drilling in each of the areas beginning later this year. The company said it expects production from the acquired assets could exceed 10,000 boe per day upon full development.

“We already own a minority interest in more than 80 percent of the producing wells and development locations included in these acquisitions and are very pleased to add these low-risk assets to our onshore portfolio,” said Pioneer Chairman and Chief Executive Officer Scott Sheffield. “These transactions provide new opportunities that are an excellent fit with our existing assets allowing us to leverage our expertise, consistent with our long-standing core area acquisition strategy.”