Pioneer Natural Resources Company (NYSE:PXD) announced the Company has discontinued efforts to divest its properties in the Barnett Shale.
Pioneer commenced a divestiture process for these properties in September 2012. Several bids were received in December, but none were representative of the value Pioneer places on these properties. As a result, Pioneer will retain operatorship of this asset.
Pioneer holds approximately 155,000 gross acres in the play, of which approximately two-thirds are located in the liquids-rich Barnett Shale Combo play. The remaining one-third is located in the dry gas area of the play. Production in the fourth quarter of 2012 was approximately nine thousand barrels oil equivalent per day, of which approximately 55% was liquids (oil and natural gas liquids) and 45% was dry gas. Pioneer is currently operating one rig in the Combo Play and plans to continue to focus its drilling activities in this area.
As a result of the planned divestiture, Pioneer's Barnett Shale properties were reclassified to discontinued operations in the third quarter of 2012. With the discontinuance of the divestment process, the financial and operating results for these properties will be reclassified back to continuing operations beginning in the fourth quarter of 2012.
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