Barnett Shale

Pioneer Natural Resources To Divest Barnett Shale Assets

Pioneer Natural Resources (PXD) is looking to sell its properties in the Barnett Shale as the company looks to focus capital on higher return projects.  These include the Spraberry, Wolfcamp Shale and the Eagle Ford Shale.

Pioneer Natural Resources has 155,000 gross acres and estimates that about 67% is in the Barnett Shale combo play, which typically produces a higher liquid hydrocarbon content.  The company reported current production from these properties of 7,000 barrels oil equivalent per day, with a 45% natural gas content.

Pioneer Natural Resources expects to complete the divestment process by the first quarter of 2013.

Pioneer Natural Resources - Barnett Shale Combo Play - Q1 2011 Update

Pioneer Natural Resources (PXD) updated the company’s first quarter of 2011 operations in the Barnett Shale Combo play in Texas.  The company has 70,000 net acres under lease and approximately 600 drilling locations.

Pioneer Natural Resources started drilling here in late 2010, and is operating two rigs in the play.  The company has drilled 24 wells, completed ten and is producing from five. 

Pioneer Natural Resources reported that the last three wells completed in the Barnett Shale combo play had average production rates of 356 barrels of oil equivalent (BOE) per day during the first five days of production.  This production included 155 barrels of oil and 854,000 cubic feet of natural gas per day.

Pioneer Natural Resources plans total drilling capital spending of $1.6 billion in 2011, and has allocated $170 million for the Barnett Shale Combo play.

Pioneer Natural Resources - Q3 2010 - Barnett Shale Conference Call

Pioneer Natural Resources (PXD) held a conference call on October 27, 2010, to discuss the company’s financial results for the third quarter of 2010.  The company made comments on its acreage that is prospective for the Barnett Shale. 

“We have over 48,000 acres that were leased in the Barnett Shale combo are, that would yield about 500 drilling locations and the first well of which is being drilled as we speak, we're drilling about 3,500-foot lateral and we'll be getting back to you with results that probably won't be on production until the latter part of this year. But suffice it to say, we're excited to see how the results from this well works out, as well as a series of additional wells we'll be drilling between now and the year-end in the combo play.”

“Per acre in the Barnett Combo Play, what's the rough dollars per acre you've invested to assemble that position…it started at $300 to $500 an acre. It's been a tie recently as 750 to 1,000. It's going to average somewhere in between those numbers. Our position is close to 50,000 acres.”

“We're drilling our first well as we speak so we don't have the results reported, and we're probably won't have any results until our fourth quarter call.”

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