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.