Independent oil and gas producer Pioneer Natural Resources Company has closed the sale of what it describes as its non-strategically important Canadian assets to Ketch Resources for approximately $199 million.
Pioneer said that it expects to recognize an after-tax gain from the Canadian asset sale of approximately $75 to $80 million. The sale involves Pioneer’s Martin Creek, Conroy Black and Lookout Butte oil and gas properties.
As the divestment is considered by Pioneer to be non-key the company retains its core interests in Canada, the Chinchaga gas and the Horseshoe Canyon coalbed gas fields. At Chinchaga, the company drilled 56 wells during its winter drilling campaign and has an extensive inventory of locations remaining to drill in future years.
Furthermore, beginning in June, Pioneer plans to drill a minimum of 80 wells to assess the potential of its extensive Horseshoe Canyon coalbed acreage position.
In addition to its Canadian business, Dallas headquartered Pioneer also runs operations in its domestic US market, Argentina and several African countries.