Pioneer Natural Resources Co. announced that the company closed on its previously announced acquisition of approximately 28,000 net acres in the Midland Basin from Devon Energy for $435 million, before normal closing adjustments.
The acquired acreage is located in Martin, Midland, Upton, Reagan, Glasscock, Andrews, Dawson, Gaines and Howard counties. Current net production is approximately 1,400 barrels of oil equivalent per day (BOEPD), with oil comprising approximately 65 percent of the production. Substantially all of the acreage is held by production.
Located in the core of the Midland Basin, significant portions of the acreage acquired offsets existing Pioneer acreage. Of the core acreage acquired, approximately 15,000 net acres are located in the Sale Ranch area in Martin County and northern Midland County where Pioneer has drilled its most productive Wolfcamp B wells.
Pioneer expects to utilize three horizontal rigs to drill the newly added Sale Ranch-area locations. The company will immediately begin the title work, permitting process and facility construction in preparation for the expected initial production from these locations during the first half of 2017.
Pioneer Natural Resources Co. is a large independent oil and gas exploration and production company headquartered in Dallas.