Texas News at a Glance: Pioneer Sells Assets, Focuses on Permian

Dallas-based Pioneer Natural Resources (NYSE:PXD) has entered into a purchase and sale agreement to sell its Barnett Shale assets in North Texas to an undisclosed private company for $155 million. Net production from the Barnett Shale averaged approximately 10,300 barrels oil equivalent per day during the first six months of this year, consisting of oil, natural gas liquids, and gas.

The transaction was effective as of August 1, and the company expects the transaction to close in September.

“[This sale] will allow us to strategically redeploy capital to our core, oil-related Spraberry/Wolfcamp assets in the Permian Basin of West Texas, where we are successfully transforming the substantial resource potential we delineated in 2013 into strong production growth,” said Scott D. Sheffield, chairman and chief executive officer, PXD.

In related news, Pioneer entered a purchase and sale agreement for its Hugoton field assets in Kansas to Linn Energy LLC (NASDAQ: LINE) for $340 million. Net production from Hugoton averaged approximately 6,600 barrels oil equivalent per day during the first six months of this year, consisting of gas and natural gas liquids.

The transaction has an effective date of July 1, and the company expects the transaction to close in September.

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