Businessweek

Pioneer Natural Resources Company, an independent oil and gas exploration and production company, engages in the exploration and production of oil and gas in the United States and South Africa. The company sells homogenous oil, natural gas liquid (NGL), and gas units. Permian Basin Spraberry field: The Spraberry field encompasses eight counties in West Texas. During 2012, the company drilled 691 wells in the Spraberry field and its total acreage position approximates 827,000 gross acres (707,000 net acres). The company has 24 rigs operating in the Spraberry field, of which 15 are drilling vertical wells and 9 are drilling horizontal Wolfcamp Shale wells. In the Spraberry interval, during 2012, the company drilled 2 horizontal Jo Mill wells with lateral lengths of 2,628 and 2,178 feet. Mid-Continent Hugoton field: The Hugoton field in southwest Kansas is a producing gas field in the continental United States. The gas is produced from the Chase and Council Grove formations at depths ranging from 2,700 feet to 3,000 feet. The company's Hugoton properties are located on 268,000 gross acres (235,000 net acres), covering approximately 400 square miles. The company has working interests in approximately 1,220 wells in the Hugoton field, approximately 1,000 of which it operates. The company operates all of the gathering and processing facilities, including the Satanta plant, which processes the production from the Hugoton field. In January 2011, the company sold a 49 percent interest in the Satanta plant to an unaffiliated third party for the third party's commitment to gas volumes to the Satanta plant. West Panhandle field: The West Panhandle properties are located in the panhandle region of Texas. The company's gas has an average energy content of 1,365 British thermal unit and is produced from approximately 867 wells on approximately 333,000 gross acres (312,000 net acres) covering approximately 375 square miles. The company controls 100 percent of the wells, production equipment, gathering system and the Fain gas processing plant for the field. Raton Basin The Raton Basin properties are located in the southeast portion of Colorado. The company owns 212,000 gross acres (186,000 net acres) in the center of the Raton Basin and produces coal bed methane gas from the coal seams in the Vermejo and Raton formations from approximately 2,300 wells. The company owns the majority of the well servicing and fracture stimulation equipment that it utilizes in the Raton field. South Texas Eagle Ford Shale and Edwards The company's drilling activities in the South Texas area during 2012 continued to be primarily focused on delineation and development of its substantial acreage position in the Eagle Ford Shale play. The company completed 137 horizontal Eagle Ford Shale wells during 2012, all of which were successful, with average lateral lengths of 5,700 feet and, on average, 13-stage fracture stimulations. Barnett Shale The company has accumulated 93,000 gross acres in the liquid-rich Barnett Shale Combo area in North Texas. In addition, the company has acquired approximately 340 square miles of proprietary 3-D seismic covering its acreage, which it is using to drilling location selections. The company's total lease holdings in the Barnett Shale play is approximately 149,000 gross acres (114,000 net acres). During 2012, the company had two drilling rigs and one Pioneer-owned fracture stimulation fleet operating in the field. The company drilled 57 Barnett Shale Combo wells during 2012. Alaska The company owns a 70 percent working interest in, and is the operator of, the Oooguruk development project. During 2012, the company drilled an exploration well which was drilled from an onshore location to further evaluate the productivity of the Torok formation and the feasibility of development expansion. International During 2012, the company's international operations were entirely located in offshore South Africa Dispositions In 2012, the company completed the sale of Pioneer South Africa. Reserves The company's proved reserves as of December 31, 2012, included proved undeveloped reserves and proved developed reserves that are behind pipe of 271.4 million barrels of oil, 103.0 million barrels of NGLs and 714.6 billion cubic feet of gas. Customers During 2012, the company's significant purchasers of oil, NGLs and gas were Plains Marketing LP, Enterprise Products Partners L.P. and Occidental Energy Marketing Inc. History Pioneer Natural Resources Company, a Delaware corporation, was founded in 1997.