Pioneer and Sinochem announce Wolfcamp tight oil JV
Pioneer Natural Resources has agreed to a US$1.7 billion farm-out deal with Sinochem, covering acreage prospective for the Wolfcamp Shale in the Permian. The Chinese conglomerate will pay an initial US$500 million in cash, in addition to funding a US$1.2 billion cost-carry agreement.Sinochem will acquire a 40% stake in 207,000 net acres in the southern Midland Basin. The Wolfcamp is an emerging play in this area. Although Pioneer has only drilled 39 wells to date, the operator has ...