Pioneer Natural Resources sells OMV its Tunisian assets for $866MM

Source: Pioneer Natural Resources

Pioneer Natural Resources Company (NYSE:PXD) has entered into a purchase and sale agreement with a wholly-owned subsidiary of OMV to sell all of the stock of Pioneer’s Tunisia subsidiaries for cash proceeds of $866 million, subject to normal closing adjustments. The transaction has an effective date of January 1, 2011 and is expected to close during the first quarter of 2011. 

Pioneer has a substantial acreage position in the Ghadames Basin onshore southern Tunisia with an interest in five blocks totaling approximately three million acres. To date, Pioneer has successfully explored in the Adam, Cherouq, Borj El Khadra and Anaguid blocks; and oil production is growing from these assets. 

The financial and operating results related to Pioneer’s Tunisia activities will be reflected as discontinued operations for the quarter and year ending December 31, 2010 and all prior periods presented in the Company’s December 31, 2010 Form 10-K. Net production from the Tunisia subsidiaries averaged approximately 5,400 barrels oil equivalent per day during 2010. 

“The sale of Tunisia will allow us to strategically redeploy capital to our high-return, oil-related core assets in the U.S.,” said Scott D. Sheffield, Chairman and CEO. “We plan to utilize the proceeds from the divestiture to accelerate drilling in the Spraberry and the Eagle Ford Shale.”

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