Irving-based Pioneer Natural Resources, which in September said wanted to sell its Barnett Shale stake, has dropped that plan because it couldn't generate an acceptable offer.
The company in October was the field's No. 11 producer, according to Powell Shale Digest's research of Texas Railroad Commission data. It holds all or part of about 155,000 acres in the field, about two-thirds in the field's northwest reaches that generally have more valuable oil and natural gas liquids."Several bids were received, but none were representative of the value Pioneer places on these properties," the company said Wednesday. It said it will continue to operate the properties, where it is running one drilling rig.The company said it will further discuss its plans for the Barnett Shale on Feb. 14, when it releases its 2012 earnings and 2013 capital spending plans.It has 181 wells producing in the Barnett, according to a January investor presentation. It said Wednesday that the wells produce the equivalent of about 9,000 barrels of oil a day, about 55 percent of it crude oil and natural gas liquids and the rest dry natural gas.In a separate announcement, Pioneer has agreed to sell to China's Sinochem Petroleum a 40 percent stake in 207,000 Wolfcamp Shale acres south of Midland for $1.7 billion. That price includes $500 million in cash at closing and $1.2 billion in future development costs over six years.It is Sinochem's first purchase of U.S. oil and gas assets. Sinochem, based in Beijing, is China's largest manufacturer of chemical products.Sinochem's purchase includes rights to the Wolfcamp and deeper formations, while Pioneer retains shallower prospects, according to Pioneer's announcement.The deal is expected to close in the second quarter.Jim Fuquay, 817-390-7552Twitter: @jimfuquayHave more to add? News tip? Tell us
