Pioneer Southwest Energy Partners L.P. (NYSE: PSE), a master limited partnership formed by Pioneer Natural Resources Company (NYSE: PXD), has non-operated working interests in approximately 1,200 identified producing wells in the Spraberry field in the Permian Basin of West Texas. As of year-end 2010, Pioneer Southwest had proved reserves of approximately 52 MMBOE, which consisted of 85% liquids and 15% gas.
Other operations highlights:
- 2010 average daily production of 6,507 BOE
- Future downspacing and recompletion opportunities
- Long-lived production with low decline rate (averaging approximately 5% per year)
Pioneer Southwest believes that Pioneer Natural Resources will periodically offer the opportunity to acquire oil and gas assets, particularly in the Spraberry field, although neither party has any obligation to the other with respect to the sale or purchase of any additional assets. Pioneer Southwest also expects to make acquisitions in its area of operations from third parties and to participate jointly in acquisitions with Pioneer Natural Resources in which Pioneer Southwest would acquire the producing oil and gas properties and Pioneer Natural Resources would acquire the undeveloped properties. Any assets that Pioneer Southwest acquires from either Pioneer Natural Resources or third parties may include interests in midstream assets associated with Pioneer Southwest’s oil and gas properties.