Pioneer Closes $1.7 Billion Wolfcamp Deal With Sinochem

Abstract

Pioneer Natural Resources Co has dosed its previously announced transaction with Sinochem Petroleum USA LLC, a US subsidiary of the Sinochem Group, to sell 40% of Pioneer's interest in 207,000 net acres leased by the company in the horizontal Wolicamp shale play in the southern portion of the Spraberry trend area field for $1.7 billion. At closing, Sinochem paid $631 million in cash to Pioneer, of which US$522 million was the up-front portion of the transaction price and US $109 million was Sinochem's 40% share of net expenditures in the joint interest area from the Dec 1, 2012 effective date of the transaction to the closing date.