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Gold/Mining/Energy : PIONEER NATURAL RES. (PXD) -- Ignore unavailable to you. Want to Upgrade?

To: Noel who wrote (167)	9/9/1998 5:46:00 PM
From: Noel	Respond to of 233

More news from Pioneer. It looks like they are shedding some assets in an attempt to return to profitability. At least they are starting to do something... 01:15 PM ET 09/08/98 Pioneer Natural Resources sells 425 domestic oil, gas fields DALLAS, Sept 8 (Reuters) - North American oil and gas producer Pioneer Natural Resources Co. said Tuesday it agreed to sell 425 domestic oil and natural gas fields to Costilla Energy for $410 million in an move to streamline its operations and cut debt. Pioneer, one of the largest independent oil exploration and production companies in the U.S., said that despite the recent volatility in oil and gas prices, the sales price "falls comfortably within Pioneer's range of expectations." Pioneer, based in Irving, Texas, near Dallas, was set up in 1997 as a result of the $1.9 billion merger of MESA, the company founded by flamboyant oilman T. Boone Pickens, and oil driller Parker & Parsley. Costilla Energy, based in Midland, Texas, is an independent oil and gas producer. Scott Sheffield, president and chief executive officer, said in a statement that "reducing our debt by $410 million significantly improves our financial flexibility." Pioneer estimates that the fields, mostly located in Texas, produce about eight million barrels of oil equivalent annually, of which about 57 percent is natural gas. The properties represent about 95 percent of the company's domestic fields but only about 10 percent of year-end 1997 proved reserves, according to Pioneer. The company is based near Dallas in Irving, Texas. The transaction will be effective Oct. 1, 1998, and is expected to close by year end. Including the resulting decline in interest expense, Pioneer said it expects its total cost structure will have been cut by more than $3.00 per barrel of oil equivalent since the end of 1997. Early Tuesday afternoon, Pioneer Natural Resources stock was up 31 cents to $14.94 a share in composite New York Stock Exchange trading. Costilla Energy's stock, traded on Nasdaq, was up 50 cents to $8.50 a share. ((New York Newsdesk 212-859-1610))