|View printer-friendly version|
Pioneer Announces Continued Success in South Texas Edwards Trend
DALLAS--(BUSINESS WIRE)--Feb. 4, 2008--Pioneer Natural Resources Company (NYSE:PXD) announced continued success from its drilling program in the Edwards Trend in South Texas. The Company drilled 34 wells in the trend during 2007 resulting in a 38% increase in average annual net daily gas production to 54 million cubic feet gas equivalent per day (MMCFEPD). At year end, Pioneer's net daily gas production from the Edwards Trend was averaging more than 60 MMCFEPD. Since initiating its Edwards Expansion project in 2006, Pioneer has booked approximately 120 billion cubic feet (BCF) of net proved gas reserves.
Three recent wells had daily gross production test rates of 12 MMCFPD to 16 MMCFPD. While these rates are not indicative of expected stabilized production rates, they materially exceeded historical average initial test rates from wells drilled in the trend. These wells are expected to be brought on production during the first quarter of 2008. To date, Pioneer has drilled nine new field discoveries in the Edwards Trend, bringing total gross discovered gas resource potential to 400 BCF to 600 BCF.
One new field discovered during the third quarter of 2007 is now believed to be the largest new field discovered in the Edwards Trend during the last 30 years with gross resource potential of approximately 150 BCF.
Pioneer has completed approximately 50% of its planned 900 square miles of 3-D seismic surveys in the trend and expects to complete the remainder of the seismic surveys by year-end 2008. Pioneer's 2008 drilling program is similar to the 2007 program and is expected to deliver an increase in average daily gas equivalent production for 2008 versus 2007 of approximately 25%.
Pioneer Natural Resources Company is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States, South Africa and Tunisia. For more information, visit Pioneer's website at www.pxd.com.
Except for historical information contained herein, the statements in this News Release about Pioneer Natural Resources Company are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of Pioneer Natural Resources Company are subject to a number of risks and uncertainties that may cause Pioneer's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of commodity prices, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, third party approvals, the costs and results of drilling and operations, availability of drilling equipment, Pioneer's ability to implement its business plans or complete its development projects as scheduled, access to and cost of capital, uncertainties about estimates of reserves, the assumptions underlying production forecasts, quality of technical data and environmental and weather risks. These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission. In addition, Pioneer may be subject to currently unforeseen risks that may have a materially adverse impact on it. Pioneer undertakes no duty to publicly update these statements except as required by law.
Cautionary Note to U.S. Investors -- The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Pioneer uses certain terms in this release, such as "resource potential" or other descriptions of volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC's guidelines prohibit Pioneer from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being recovered by Pioneer.
CONTACT: Pioneer Natural Resources
Copyright West LLC. Minimum 15 minutes delayed.