Sinochem Group to Buy U.S. Shale Gas at USD 1.7bn 

Sinochem Group to Buy U.S. Shale Gas at USD 1.7bn

BEIJING, Jan 31, 2013 (Menafn - SinoCast Daily Business Beat via COMTEX) --Pioneer Natural Resources disclosed on this Wednesday that it would sell some equities in Wolfcamp shale oil and gas field to Sinochem Group, with transaction price being USD 1.7 billion.

The transaction is expected to be finished in the second quarter of this year. Pioneer Natural Resources said the buyer would acquire the interest with cash totaling USD 500 million while the remaining USD 1.2 billion paid by drilling and facility costs in the future. The U.S. Company will reserve 60% equities in Wolfcamp so as to conduct leasing, drilling, operating and marketing operations as Wolfcamp operator. By December 31 of last year, Pioneer Natural Resources had successfully explored and completed 39 horizontal wells in the region.

The two companies agree to jointly develop not more than 86 horizontal wells in 2013, 120 in 2014 and 165 in 2015.

Source: www.sina.com.cn (January 31, 2013)

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