TAQA buys Pioneer unit for $540m

When finalised, 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 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 per cent to daily production, increasing 2P reserves by 35 per cent, and providing a reserve life index (RLI) in excess of 17 years," said Peter Barker-Homek, CEO of TAQA.