Pioneer Natural to sel 40% of Wolcamp Shale interest to Sinochem for $1.7B Pioneer Natural has signed an agreement with Sinochem Petroleum USA LLC, a U.S. subsidiary of the Sinochem Group, to sell 40% of Pioneer’s interest in approximately 207,000 net acres leased by the company in the horizontal Wolfcamp Shale play in the southern portion of the Spraberry Trend Area Field for a total price of $1.7B. Sinochem will pay $500M in cash to Pioneer, before normal closing adjustments, and will pay the remaining $1.2B by carrying a portion of Pioneer’s share of future drilling and facilities costs. The transaction is expected to close during Q2. Pioneer will continue as operator. Sinochem has agreed to fund 75% of Pioneer’s portion of drilling and facilities costs after closing until the $1.2B of drilling carry is fully utilized. Pioneer and Sinochem have agreed to a development plan which forecasts the drilling of 86 horizontal Wolfcamp Shale wells during 2013, increasing to 120 wells in 2014 and 165 wells in 2015.
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