Pioneer Natural Resources sells its Alaska business unit to Caelus Energy for US$300 million
Caelus will pay US$550 million for the North Slope assets. Given Oooguruk's potential and our US$902 million valuation, this could prove to be a bargain price. But operational challenges remain; a more conservative scenario with only proven reserves modelled yields a US$403 million valuation. Newly enacted tax terms also remain subject to possible repeal; their removal results in more than a US$200 million decrease to our base case Oooguruk valuation.