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Pioneer Completes Drilling Operations in Nigeria
DALLAS--(BUSINESS WIRE)--July 16, 2007--Pioneer Natural Resources Company (NYSE:PXD) today announced that it participated in the drilling of the Ofuruma 1X well on the OPL 256 block (25% WI) in deepwater Nigeria. The well tested multiple objectives on a thrust structure located near the northeastern corner of the block, but found only non-commercial oil and gas accumulations. The Company has also reached an agreement to divest its interest in the OPL 320 block in deepwater Nigeria. The transaction is subject to governmental approvals and certain other conditions. As a result, Pioneer will exit its exploration activities in Nigeria, consistent with its strategy to focus on lower-risk onshore resource plays, principally in North America.
The Company expects to report a charge in its second quarter earnings associated with the unsuccessful Ofuruma 1X well and its agreement to divest its interest in the OPL 320 block. Also during the second quarter, the Company expects to recognize a cumulative tax benefit, associated primarily with its Nigerian activities, which will offset the charge.
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 and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.
CONTACT: Pioneer Natural Resources Company
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