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