OilVoice - Pioneer Natural Resources Closes $1.15bn Eagle Ford Shale JV with Reliance

Pioneer Natural Resources Closes $1.15bn Eagle Ford Shale JV with Reliance

Tuesday, June 29, 2010

Pioneer Natural Resources 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.