Pioneer Natural Resources’ shares fall on report of sale of shale field stake to Reliance
By APTuesday, June 22, 2010
Pioneer Natural’s shares fall on shale sale report
DENVER — Shares of Pioneer Natural Resources fell Tuesday after The Financial Times reported it would sell interest in a Texas shale field to oil, gas and petrochemicals giant Reliance Industries Ltd.
THE SPARK: The newspaper said India’s Reliance will pay $1.35 billion for a 45 percent interest in Pioneer’s assets in the Eagle Ford field southeast of San Antonio.
The newspaper based its report on information from people familiar with the issue who declined to be identified. It said a deal was expected to be announced later Tuesday.
THE BACKGROUND: Pioneer, an independent oil and gas exploration and production company, said last month it would pursue a joint venture to boost development in Eagle Ford. It hoped to make an announcement by the end of the second quarter.
The Dallas company has drilled at least five successful wells on its holdings in the Eagle Ford region.
Representatives of both Pioneer and Reliance declined comment.
In April, Reliance agreed to pay Atlas Energy Inc. $1.7 billion for an interest Atlas’ Marcellus Shale assets.
SHARE ACTION: Shares of Pioneer fell $3.21, or 4.5 percent, to $67.82 in afternoon trading.
