SOUTH JORDAN — Pioneer Oil and Gas on Monday announced the sale of some of its Uinta Basin projects.
The company received $707,074 for the sale of its Soldier Summit coalbed methane project and portions of its Uinta Basin Overpressured Gas Project. The company sold all but 13,189 acres of its 37,088 acres in the Uinta project to two large independent oil and gas producers, the names of which Pioneer did not disclose.
The 3,493-acre Soldier Summit project was sold in its entirety to one of the companies.
Pioneer will retain a 10 percent carried working interest on the first well drilled on 14,320 acres purchased by one of the companies in the Uinta project and the right to participate at 10 percent or "farmout" on subsequent wells. Pioneer will retain an overriding royalty interest from 1 percent to 3.33 percent on the Uinta project properties and Soldier Summit project purchased by the other company. Overriding royalties participate in the revenue for their percentage interest but pay none of the project costs.
Don J. Colton, Pioneer president, said funds from the sale will be used to pay off a $654,000 bank loan and provide working capital for future exploration projects.