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Pioneer Announces Fourth Discovery on Jenein Nord Block in Tunisia
DALLAS--(BUSINESS WIRE)--May 31, 2007--Pioneer Natural Resources Company (NYSE:PXD) today announced its fourth discovery on its operated Jenein Nord Block (50% interest assuming ETAP participation) in Tunisia. Multiple productive zones were tested in the Shaheen #1 well with gross rates totaling approximately 8,000 barrels of oil equivalent per day (BOEPD).
On the Jenein Nord Block, Pioneer has now drilled four wells, all new discoveries. The four discoveries have been tested at a combined multi-zone gross rate of approximately 30,000 BOEPD. The combined test rate, which is not necessarily indicative of an actual combined production rate, was comprised of 85% oil and 15% gas and condensate.
Plans to construct oil production facilities on the Jenein Nord Block are progressing. By the end of June, Pioneer expects to finalize these plans and have a combined oil production rate forecast for startup which is expected during the fourth quarter of 2007.
Pioneer and other producers in the country are working with the government to evaluate the opportunity to expand infrastructure to supply gas production from southern Tunisia to northern markets.
Pioneer and its partners have acquired approximately 1,200 square kilometers of 3-D seismic, and Pioneer has identified more than 30 prospects on its acreage, some with individual resource potential as large as 25 million barrels of oil equivalent. Pioneer's drilling plans for the remainder of 2007 include up to four additional exploration wells on the Pioneer-operated Jenein Nord Block and an additional three wells on adjacent non-operated blocks.
"With an interest in approximately 3.9 million acres, a large and expanding inventory of seismic and other technical data and four years of local experience, we have laid a strong foundation for our new core area in Tunisia. We are excited by the excellent results of our Jenein Nord drilling program and look forward to delivering strong production and reserve growth for several years to come," stated Scott Sheffield, Pioneer's Chairman and CEO.
Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States, Canada, 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 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 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 oil and gas prices, product supply and demand, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, third party approvals, international operations and associated international political and economic instability, 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, the assumptions underlying production forecasts, uncertainties about estimates of reserves, quality of technical data, environmental and weather risks, acts of war or terrorism. These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.
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 Company
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