Chinese Company To Buy Acreage in West Texas

Link to Oil & Gas Journal:

Sinochem Petroleum USA LLC, a subsidiary of China’s Sinochem Group, plans to pay $1.7 billion to acquire 40% of Pioneer Natural Resources Co.’s stake in 207,000 net acres in the Wolfcamp shale in the Spraberry trend of West Texas.

At closing, Sinochem will pay $500 million in cash to PNR, before normal closing adjustments, and will pay the remaining $1.2 billion by carrying a portion of Pioneer’s share of future drilling costs.

Sinochem and PNR plan to drill 86 horizontal Wolfcamp shale wells during 2013, 120 wells in 2014, and 165 wells in 2015. The transaction is expected to close during the second quarter, subject to customary governmental approvals.

Previously reported.