Pioneer closes sale of Canadian properties

Petroleum News

Pioneer Natural Resources said June 1 that its Canadian subsidiary has closed the sale of its Martin Creek, Conroy Black and Lookout Butte oil and gas properties to Ketch Resources “for proceeds after closing adjustments of approximately $199 million.” The Dallas, Texas-based independent expects to recognize an after-tax gain of approximately $75 to $80 million from the asset sale based on its “intent to create a repatriation plan that qualifies for the provisions of the American Jobs Creation Act of 2004,” Pioneer said in a press release. The company will report the operations results of the Canadian properties sold in its second quarter results.

Pioneer retained its core areas in Canada, the Chinchaga gas and the Horseshoe Canyon coalbed gas fields.

At Chinchaga, the company drilled 56 wells during its winter drilling campaign and said it has an “extensive inventory of locations remaining to drill in future years.”

Beginning this month, Pioneer said it plans to drill a minimum of 80 wells to assess the potential of its Horseshoe Canyon coalbed acreage position.

Pioneer is an exploration and production company with operations in the United States, Argentina, Canada, Equatorial Guinea, Nigeria, South Africa and Tunisia.