Pioneer Natural Resources to sell Raton Basin assets in Colorado, US

Pioneer Natural Resources Company has reached an agreement to divest all of its assets in the Raton Basin in southeastern Colorado, US, to Evergreen Natural Resources for $79m.

The sale comprises all of Pioneer’s interests in the field, including all of its producing gas wells and the associated infrastructure.

The company expects the sale to result in a pre-tax non-cash loss of $65m to $75m, which will be recorded during the second quarter of this year.

Pioneer Natural Resources president and CEO Timothy Dove said: “I want to personally thank all of our Raton employees for their strong efforts, dedication and the value they have created for our shareholders. I am pleased that Evergreen plans to build on this success.”

During the first quarter of this year, net production from Raton assets averaged around 84 million cubic feet a day.

The transaction is part of Pioneer’s plans to sell its properties in South Texas, Raton and the West Panhandle field announced in February.

The company is focused on a Permian Basin ‘pure play’ and announced a capital expenditure of $2.9bn for this year, including $2.65bn for drilling and completion activities.

Its acreage in the Midland Basin includes 550,000 gross acres in the northern portion of the play and 200,000 gross acres in the southern Wolfcamp joint venture area.

Subject to the fulfilment of certain closing conditions, the transaction is anticipated to be completed by the end of next month.