Pioneer Natural Resources to sell Barnett shale properties
BY ANNA PRIOR
IRVING, Texas -- Pioneer Natural Resources plans to sell its properties in the Barnett Shale formation as the oil and gas exploration and production company looks to refocus on higher-return assets.
Pioneer's focus on natural gas has been affected by industrywide pricing issues amid slack demand and a surge in production from unconventional shale-gas formations.
Since entering the Barnett Shale in 2007, the company has accumulated about 155,000 gross acres, of which about two-thirds are located in liquid-rich areas. The other third are in dry gas areas.
Pioneer has grown production at Barnett Shale properties to about 7,000 bopd, of which about 55% is oil and natural gas liquids and 45% is dry gas.
The company expects to open a data room in October and expects to complete the divestiture process during the first quarter of 2013.
"The sale of our Barnett Shale properties will allow us to strategically reallocate capital to our higher-return, core assets," said Chief Executive Scott Sheffield, adding that the company plans to use the net proceeds from the sale to reduce indebtedness under Pioneer's credit facility.
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