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Pioneer Natural Resources Company Announces the Sale of Spraberry Properties to Pioneer Southwest Energy Partners L.P.

DALLAS--(BUSINESS WIRE)--Aug. 31, 2009-- Pioneer Natural Resources Company (“Pioneer”) (NYSE:PXD) today announced that it has sold certain oil and gas properties in the Spraberry field in West Texas to Pioneer Southwest Energy Partners L.P. (PSE) for $171.2 million in cash, subject to customary purchase price adjustments. The transaction also includes the assignment of certain 2009 through 2013 commodity price derivative positions. Based on the Company’s current tax attributes, it does not expect to pay any cash taxes associated with the sale of properties and assignment of derivative contracts.

The sold properties have estimated proved reserves of approximately 18.9 million barrels oil equivalent, of which 37% are proved developed reserves and 63% are proved undeveloped reserves. Production from the sold properties is currently approximately 1,300 barrels oil equivalent per day. Of this amount, approximately 65% is oil, 20% is natural gas liquids and 15% is gas.

Scott D. Sheffield, Chairman and CEO, stated, “This transaction provides an attractive opportunity to sell assets and use the proceeds to further reduce debt and improve financial flexibility. Recognizing that PSE plans to initiate a two-rig drilling program during the fourth quarter of 2009 and that Pioneer owns 68% of PSE, this transaction effectively adds two rigs to the 10 to 12 rig drilling program Pioneer has planned in the Spraberry field for 2010 and will increase our total well count next year by approximately 50 wells to 300 to 350 wells.”

“Approximately 50% of Pioneer’s proved reserves are in the Spraberry field. The strong performance of PSE in the market since its IPO in May of 2008 continues to demonstrate the value of these long-lived oil reserves.”

Special Notice Regarding Pioneer Southwest Energy Partners L.P. Conference Call. On Tuesday, September 1, 2009 at 9:00 a.m. Central Time, Pioneer Southwest Energy Partners L.P. will discuss the Spraberry transaction with an accompanying presentation. It is possible that discussion on the Pioneer Southwest conference call will include matters regarding Pioneer Natural Resources Company. The call will be webcast on Pioneer Southwest’s website, www.pioneersouthwest.com. The presentation will be available on the Pioneer Southwest website for preview in advance of the call. At the Pioneer Southwest website, select ‘INVESTORS’ at the top of the page. For those who cannot listen to the live webcast, a replay will be available shortly thereafter. Or you may choose to dial (888) 364-3104 (confirmation code: 5308443) to listen by telephone and view the accompanying presentation at the website above. A telephone replay will be available by dialing (888) 203-1112 (confirmation code: 5308443).

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, 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, litigation, 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 activities 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.

Source: Pioneer Natural Resources Company

Pioneer Natural Resources
Investors:
Frank Hopkins, 972-969-4065
or
Matt Gallagher, 972-969-4017
or
Nolan Badders, 972-969-3955
or
Media and Public Affairs:
Susan Spratlen, 972-969-4018
or
Suzanne Hicks, 972-969-4020

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