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Pioneer Expands Position in Raton Basin
DALLAS--(BUSINESS WIRE)--July 30, 2007--Pioneer Natural Resources Company (NYSE:PXD) ("Pioneer") today announced that it has entered into an agreement with Petrogulf Corporation to acquire an interest in approximately 30,000 net acres in the Raton Basin for $205 million, before typical closing adjustments. The acquisition is expected to close during the fourth quarter of 2007 and is subject to customary closing conditions.
A majority of the acquisition value is derived from approximately 9,800 net acres immediately south of Pioneer's Sangre de Cristo Unit. Pioneer estimates that this acreage holds approximately 124 billion cubic feet (Bcf) of potential coal bed methane ("CBM") reserves, consisting of approximately 95 Bcf of estimated proved reserves and an additional 29 Bcf of resource potential. Current net production from the producing properties being acquired is 10 million cubic feet per day, and the acquisition includes more than 110 potential CBM drilling locations.
"This acquisition further enhances our strong position in the Raton Basin at an attractive cost and with significant upside to expand the proved reserves through additional step-out drilling," stated Scott Sheffield, Chairman and CEO.
Pioneer Natural Resources Company is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States, Canada, South Africa and Tunisia. For more information, visit Pioneer's website at www.pxd.com.
Except for historical information contained herein, the statements in this News Release about Pioneer Natural Resources Company are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of Pioneer Natural Resources Company are subject to a number of risks and uncertainties that may cause Pioneer's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of oil and gas prices, product supply and demand, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the costs and results of drilling and operations, availability of drilling equipment, Pioneer's ability to implement its business plans or complete its development projects as scheduled, access to and cost of capital, uncertainties about estimates of reserves, quality of technical data and environmental and weather risks. These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.
Cautionary Note to U.S. Investors -- The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Pioneer uses certain terms in this release, such as "potential," "resource potential" or other descriptions of volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC's guidelines prohibit Pioneer from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being recovered by Pioneer.
CONTACT: Pioneer Natural Resources Company
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