Pioneer Natural Resources Announces Closing of $1.15 Billion Eagle Ford Shale Joint Venture with Reliance Industries

Published on Tuesday, 29 June 2010 16:49 Written by TradersHuddle Staff

DALLAS-( Business Wire )-

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

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.

Pioneer Natural Resources Company is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations primarily in the United States. For more information, visit Pioneer’s website at www.pxd.com.

Except for historical information contained herein, the statements in this News Release 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 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 commodity prices, product supply and demand, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, litigation, the costs and results of drilling and operations, access to and availability of drilling equipment and transportation, processing and refining facilities, Pioneer's ability to implement its business plans or complete its development activities as scheduled, access to and cost of capital, quality of technical data, and environmental and weather risks, including the possible impacts of climate change. These and other risks are described in Pioneer’s 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission. In addition, Pioneer may be subject to currently unforeseen risks that may have a materially adverse impact on it. Pioneer undertakes no duty to publicly update these statements except as required by law.

Pioneer Natural ResourcesInvestors:Frank Hopkins, 972-969-4065orNolan Badders, 972-969-3955orMedia and Public Affairs:Susan Spratlen, 972-969-4018orSuzanne Hicks, 972-969-4020