Pioneer Natural Resources closes $1.15B Eagle Ford Shale JV with Reliance

Source: Pioneer Natural Resources

Pioneer Natural Resources Company (NYSE:PXD) closed its previously announced $1.15 billion joint venture transaction in the highly prospective Eagle Ford Shale play with a wholly-owned subsidiary of Reliance Industries Limited. 

Pioneer sold a 45% interest in approximately 212,000 net acres leased by the Company in the Eagle Ford Shale play for a total price of $1.15 billion. 

Reliance paid $266 million in cash to Pioneer at closing and will pay an additional $879 million to carry Pioneer’s share of future drilling costs. Reliance will also participate with Pioneer in the development of midstream assets in the Eagle Ford Shale as a 49.9% partner. 

Reliance also entered into a joint venture agreement with Pioneer’s existing partner in the Eagle Ford Shale play, Newpek LLC, for total consideration of approximately $210 million. 

The joint venture agreement is effective June 1, 2010.

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