(Source: Datamonitor)
Pioneer Southwest Energy Partners has acquired certain oil and gas properties in the Spraberry field in west Texas from Pioneer Natural Resources Company for $171.2 million in cash. The transaction value also includes the assignment of 2009 through 2013 commodity price derivative positions.
The acquired properties have estimated proved reserves of approximately 18.9 million barrels oil equivalent, of which 37% are proved developed reserves and 63% are proved undeveloped reserves (approximately 170 40-acre drilling locations).
Production from the acquired properties is approximately 1,300 barrels oil equivalent per day. Of this amount, approximately 65% is oil, 20% is natural gas liquids and 15% is gas.
Scott Sheffield, chairman and CEO of the partnership's general partner, said: "This acquisition demonstrates our commitment to grow the partnership through strategic acquisitions, especially in our core Spraberry operating area.
"These low-decline Spraberry producing properties, coupled with our planned low-risk, high-return drilling program and attractive derivatives position, will add to our predictable, stable cash flow and are well suited to support and potentially grow future distributions."
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