Reliance – Pioneer Natural- Newpek Joint Venture | Eagle Ford

Reliance Industries enter the fold in South Texas with a $1.15 billion (~$12,000 per acre) Eagle Ford acquisition. Reliance paid Pioneer $266 million upfront and will carry development costs up to $879 million.  Reliance also acquired a similar interest from Newpek LLC for $210 million to give it consistent ownership across the partnerships acreage in Bee, DeWitt, Karnes, La Salle, Live Oak, and McMullen counties.

“Pioneer Natural Resources Company (NYSE:PXD) (“Pioneer” or “the Company”) today announced the Company signed a joint venture agreement with a wholly-owned U.S. subsidiary of Reliance Industries Limited (“Reliance”). Under the agreement, Pioneer will sell a 45% interest in approximately 212,000 net acres leased by the Company in the highly prospective Eagle Ford Shale play for a total price of $1.15 billion. Reliance will pay $266 million in cash to Pioneer at closing and will pay an additional $879 million to carry Pioneer’s share of future drilling costs (“drilling carry”). Reliance will also participate with Pioneer in the development of midstream assets in the Eagle Ford Shale as a 49.9% partner. Closing is expected within five business days. Reliance has also entered into a joint venture agreement with Pioneer’s existing partner in the Eagle Ford Shale play, Newpek LLC, for total consideration of approximately $210 million.”

Read the full press release at pioneernrc.com

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Kenneth E. DuBose

Kenneth E. DuBose

Kenneth DuBose is the past President of Cheyenne Minerals Inc., an independent oil and gas operator. He began his energy industry career with ARCO Oil & Gas. Mr. DuBose then directed development of natural gas storage projects with Tejas Power Corp. He was a founding member of U.S. Minerals, (acquired by Torch Energy in 1999) a provider of internet based education for America’s mineral owners. Mr. DuBose holds a BS in Petroleum Engineering from Mississippi State University. He has served on various industry steering committees, non-profit boards, and is an active member of the Society of Petroleum Engineers, the National Association of Royalty Owners, the American Association of Professional Landmen, as well as being a Registered Investment Advisor. He writes on topics of oil and gas investing, wealth management and personal finance, having appeared in the Wall Street Journal, Kiplinger’s, Kiplinger’s Personal Finance, Houston Business Journal, Financial Advisor and various radio and TV outlets.
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