Pioneer Natural Resources Company (NYSE:PXD) is continuing its aggressive development plans for various oil and liquids plays in the United States as it seeks to meet its goal of 15% compound annual production growth over the next three years.
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Pioneer Natural Resources reported average production of 114,600 barrels of oil equivalent (BOE) per day in the third quarter of 2010, up 1% sequentially. This production was split with just slightly less than 50% from oil and natural gas liquids, and the balance from natural gas. This production mix will shift further away from natural gas over the next three years, as the company is focusing its capital on oil and liquids plays.
One of Pioneer Natural Resources' core areas is the Spraberry field in Texas, where the company has 900,000 net acres under lease and approximately 500 million in proved reserves.
Pioneer Natural Resources is developing many different formations in this field, including the Wolfcamp, Strawn, Dean and Spraberry. Pioneer Natural Resources has 25 rigs operating in the play and has allocated capital to drill 440 wells in 2010. The company plans to increase its rig count here to 30 by the end of 2010, and to 40 in 2012.
Pioneer Natural Resources estimates that its production will double from 33,000 BOE per day in the fourth quarter of 2010 to between 60,000 and 66,000 BOE per day by 2013. Other companies in the Spraberry field include Apache Corporation (NYSE:APA) and Concho Resources (NYSE:CXO).
Eagle Ford Shale
Another oil and liquids play that Pioneer Natural Resources is developing is the popular Eagle Ford Shale in Texas. The company has drilled and completed 14 wells here and has another eight waiting to be completed. Pioneer Natural Resources is also ramping up development quickly here, and will have 14 rigs operating in the Eagle Ford Shale by 2013, with plans to drill 140 wells.
Pioneer Natural Resources is also active in Tunisia, where the company is involved in the Cherouq and Anaguid areas. Pioneer Natural Resources has drilled three successful wells in these areas over the last six months, and reported a combined gross initial production rate of 10,000 BOE per day from these wells.
The success in Tunisia has led Pioneer Natural Resources to schedule two more appraisal wells in 2010 on its properties in Tunisia. If these two wells are successful, the company expects net production from Tunisia to be between 8,000 and 9,000 BOE per day by early 2011.
Other energy companies involved in Tunisia include Eni (NYSE:E), which has investments there and in several other North African countries, including Algeria, Egypt and Libya.
Pioneer Natural Resources is using the Spraberry and Eagle Ford Shale to increase production at double-digit growth rates through 2013. The company is also shifting more towards oil and liquids development of its base. (To learn more, check out our Oil & Gas Industry Primer.)
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