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Pioneer Initiates Oil Production from Oooguruk
DALLAS--(BUSINESS WIRE)--June 9, 2008--Pioneer Natural Resources Company (NYSE:PXD) today announced that production and sales from the Oooguruk Unit on the North Slope have commenced as scheduled. Pioneer is the first independent to initiate new field operations on the North Slope and has set a new precedent for North Slope offshore development by bringing Oooguruk on line in less than five years. Pioneer (70% working interest owner and operator) and its partner, Eni (30% working interest owner), sanctioned the Oooguruk development in early 2006 after drilling three exploration wells during the winter of 2003.
Pioneer anticipates peak gross production in 2010 of 15,000 to 20,000 barrels of oil per day (BOPD) from approximately 40 development wells (approximately half of the wells will be producing wells and half will be injection wells). These wells are expected to be drilled over the next three years. The gross oil resource potential from these base development wells is as much as 90 million barrels, before expansion opportunities. Field life is expected to be 25 to 30 years.
In commissioning the system and evaluating initial production data, Pioneer expects to initially produce 2,000 to 3,000 gross BOPD from Oooguruk. Production is expected to be shut in for approximately 45 days this summer for scheduled maintenance on the onshore third-party processing facility. Thereafter, production will be reinitiated and is expected to rise as additional wells are brought on line.
Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, 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 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 commodity prices, product supply and demand, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, the costs and results of drilling and operations, access to and availability of drilling equipment and transportation, processing and refining facilities, 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 and resource potential, the assumptions underlying production forecasts, quality of technical data, environmental and weather risks and 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 ("SEC"). 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 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
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