RIL acquiring 45 per cent of Pioneer's Texas shale gas assets for $1.35 billion: report
22 June 2010
Reliance Industries Ltd (RIL) is close to announcing a $1.35 billion deal with Pioneer Natural Resources of the US to acquire a substantial stake in the latter's shale gas field in Texas, the Financial Times reported today.
The report quoting sources close to the development said Reliance is expected to announce the deal after 'the close of business' in New York on Tuesday.
The deal, involving 45 per cent of Pioneer's shale gas assets in Texas, would be RIL's second stake acquisition in a US shale gas field since April.
RIL had, in April, acquired 40 per cent of the 3,00,000-acre shale gas property of Atlas Energy Inc, spread across West Virginia, Pennsylvania and New York, for $1.7 billion.
Pioneer has around 3,10,000 acres in the Eagle Ford Shale gas region in South Texas, according to the report.
On 4 May, Pioneer announced its fifth successful well in the Eagle Ford Shale in South Texas. The well, located in Karnes County, Texas, tested at an initial production rate of 15.6 million cubic feet of gas equivalent per day (including 14.1 million cubic feet of gas per day and 255 barrels of condensate per day).
The liquids-rich gas contains 1,200 British thermal units per cubic foot. The well was drilled to a vertical depth of approximately 13,300 feet and completed in a 4,100-foot lateral section with a 12-stage fracture stimulation. Production from the well is expected to flow to sales beginning in the third quarter after completion of a Pioneer-operated gas treating facility where the condensate will be separated from the gas.