Sinochem Petroleum USA LLC agreed to acquire 82,800 net acres of leasehold in the Wolfcamp shale field from Pioneer Natural Resources Co. (NYSE:PXD) for $1.7 billion on January 30, 2013. The purchase price is before normal closing adjustments. Under the terms of the agreement, Sinochem will pay $522 million in cash and will pay the remaining $1.2 billion by carrying a portion of Pioneer's share of future drilling and facilities costs. Sinochem Petroleum acquired loan of approximately $1 billion for the acquisition. Pioneer will continue as operator and will conduct all leasing, drilling, operations and marketing activities in the joint interest area. Post acquisition, William F. Hannes, formerly Executive Vice President South Texas Operations, will become Executive Vice President of the newly formed Southern Wolfcamp Asset Team.

The transaction is subject to customary governmental approvals and third party approvals. The transaction is expected to close by June 1, 2013. Oscar Brown, Andrew Castaldo and Steve Almrud of BofA Merrill Lynch acted as financial advisor and David Cohen, Marcia Backus, Shay Kuperman, Chris Dawe, Billy Vigdor, Tom Crichton, Todd Way, John Grand, Michael Allers, Mingda Zhao, Alan Alexander, Scott Fulford, Elizabeth Bellows, Larry Nettles, Xiao Yong, Winston Oxley, James Olson, Mike Wortley, and Guy Lipe of Vinson & Elkins LLP acted as legal advisors to Pioneer on the transaction. Kevin Shaw, Bill Moss, Pablo Ferrante, Andrew J. Stanger, Jeff Dobbs, Jon Scott, Gabriel Salinas, William S. Moss III and Robin Clarkson of Mayer Brown LLP acted as the legal advisor and Maynard Holt, Lance Gilliland, Ward Polzin and Jeff Knupp of Tudor, Pickering, Holt & Co. Securities, Inc. acted as financial advisor to Sinochem.