Pioneer Natural Resources

Pioneer Natural Resources has retained Meagher Oil & Gas Properties Inc. to sell certain producing properties and leasehold in the Uinta and Piceance basins in Utah and Colorado. The package includes an 87% operated interest in 372,264 gross acres (269,469 net) in the Castlegate and Greater Main Canyon properties of Utah and the Columbine Springs, Thunder, Douglas Creek North and Lay Creek/Yampa properties in Colorado. Current net production is 6.7 million cubic feet equivalent per day (89% gas) from 201 active wells. Current net cash flow is $220,000 per month, with projected 2010 cash flow to be $3.6 million. Total proved reserves are 120 billion cubic feet equivalent (262 billion probable, 89 billion possible). Castlegate involves a 90% working interest (90% 73% net revenue interest) in 25,111 gross acres (24,130 net, 53% held by production) in Duchesne, Utah and Carbon counties, Utah. Current production is 1.84 million cubic feet equivalent per day (100% gas) from 34 active wells (100% operated) producing from the Blackhawk coals. Upside includes coalbed-methane development expansion and the Price River and Castlegate sands. Greater Main Canyon involves a 78% working interest (64% net revenue interest) in 71,650 gross acres (56,170 net, 96% held by production) in Uintah and Grand counties, Utah. Greater Main Canyon Fields include Pine Springs, Horse Point, Tumbleweed, Wolf Point, Sweetwater Canyon, Rat Hole Canyon, Black Horse Canyon, East Canyon and Crooked Canyon. Current production is 1.8 million cubic feet equivalent (94% gas) from 29 active wells (79% operated) producing from the Castlegate, Mancos B, Cedar Mountain/Dakota, Entrada and Wingate formations. Upside includes the Wasatch, Castlegate, Mancos, Cedar Mountain/Dakota, Entrada and Wingate. Columbine Springs involves a 77% working interest (63% net revenue interest) in 65,025 gross acres (50,822 net, 91% held by production) in Garfield and Rio Blanco counties, Colorado. Fields include Displacement Point, Baxter Pass and Davis Canyon. Current production is 1.65 million cubic feet equivalent per day (97% gas) from 50 active wells (96% operated) producing from the Mesaverde coals, Mancos B, and Dakota formations. Thunder involves a 99% working interest (79% net revenue interest) in 10,713 gross acres (10,657 net, 74% held by production) in Garfield and Rio Blanco counties, Colorado. Fields includes Thunder, Trail Canyon, Twin Buttes, White Face Butte and Whiskey Creek. Current production is 100,000 cubic feet equivalent per day (90% gas) from 12 active wells (83% operated) producing from the Mancos B and Dakota formations. Douglas Creek North involves an 80% working interest (66% net revenue interest) in 32,702 gross acres (26,548 net, 58% held by production) in Rio Blanco County, Colorado. Fields include Banta Ridge, Douglas Creek North, Tiaga Mountain and SW Rangely. Current production is 1.2 million cubic feet equivalent per day (67% gas) from 43 active wells (77% operated) producing from the Mancos B and Castlegate formations. Lay Creek involves 98,639 gross acres (55,256 net, 1% held by production) and Yampa involves 65,795 gross acres (45,262 net, none held by production) in Moffat and Routt counties, Colorado. Assets include 32 active test wells (100% operated). The bid due date is Nov. 16. The closing date is Dec. 15. The effective date is Dec. 1. Contact Julia Foster, 303-721-6354 ext. 229.