Pioneer Natural Resources Co. said it will save $400,000 per well by closing its frac sand mine in Brady, Texas, and shifting supply to its mines in west Texas, closer to its oil and gas extraction operations, according to San Angelo Live.
Pioneer expects to wind down operations during the first quarter of 2019 and transition to 100 percent west Texas sand by May 2019. The Brady mine closure will not be inexpensive in the near term. The publicly traded corporation will take a noncash after-tax charge of $350 million to $400 million in the fourth quarter of 2018 related to the closure.
“The new west Texas sand mines with their low cost of mining and proximity to our Permian acreage position have provided us a more cost-effective, long-term source of sand supply,” said Timothy L. Dove, Pioneer, president and CEO.
The news of Pioneer shuttering its Brady sand mine comes after Ohio-based Covia Corp. said it was also closing its two mining facilities southeast of Brady in the town of Voca, Texas.