TAQA to acquire Pioneer Canada
The Abu Dhabi National Energy Company PJSC (ADSM: TAQA) announced today the purchase of Pioneer Canada, a subsidiary of the US firm Pioneer Natural Resources Company (NYSE:PXD) for USD 540 million.
When finalized, the Pioneer deal will provide TAQA with an additional 59 million barrels of (gross) WI P+P oil and gas reserves, more than 10,000 barrels of energy per day (boe/d), and add to TAQA’s best-in-class exploration and production team with newly acquired expertise in coalbed methane exploration and production.
Calgary-based Pioneer Canada Ltd. is a Canadian oil and gas exploration company with operations in the Western Canadian Sedimentary Basin.
The Pioneer transaction is expected to close during the fourth quarter of 2007 and is subject to regulatory approval and other customary closing conditions. "The Pioneer business is a great addition to TAQA's existing operations in Canada. The acquisition provides further scale and efficiencies to our existing businesses by adding 27% to daily production, increasing 2P reserves by 35%, and providing a reserve life index (RLI) in excess of 17 years,” said Peter Barker-Homek, CEO of TAQA.
On 16 August of this year, TAQA announced that it will own and operate TAQA North Ltd, following the completion of the acquisition of Northrock Resources Ltd, a subsidiary of the US firm Pogo Producing Company (NYSE: PPP) for USD two billion.
The new entity, TAQA North, is set to provide TAQA with an additional 142 million barrels of proven oil and gas reserves, more than 37,000 boe/d (gross), and a best-in-class exploration and production team.
TAQA carries Aa2 and AA- credit ratings and was recently presented Emerging Market Deal of the Year and Middle East Corporate Bond of the Year 2006 awards by EuroWeek.