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Pioneer Natural Resources Continues Successful Eagle Ford Shale
DALLAS, May 04, 2010 (BUSINESS WIRE) --Pioneer Natural Resources Company (NYSE:PXD) today announced its fifth successful well in the Eagle Ford Shale in South Texas. The Chesnutt Gas Unit #1 well, which is located in Karnes County, Texas, tested at an initial production rate of 15.6 million cubic feet of gas equivalent per day (including 14.1 million cubic feet of gas per day and 255 barrels of condensate per day) on a 24/64 inch choke with approximately 5,600 pounds per square inch wellhead flowing pressure. The liquids-rich gas contains 1,200 British thermal units per cubic foot. The well was drilled to a vertical depth of approximately 13,300 feet and completed in a 4,100-foot lateral section with a 12-stage fracture stimulation. Production from the well is expected to flow to sales beginning in the third quarter after completion of a Pioneer-operated gas treating facility where the condensate will be separated from the gas.
Scott Sheffield, Chairman and CEO, stated, "We are very excited to have successfully drilled another highly productive well in the Eagle Ford Shale. The Chesnutt #1 provides additional confidence in the development potential of the 1,750 Eagle Ford Shale locations we have identified across our large 310,000 acre position. This well also further validates the attractive liquids yields we expect to realize in the condensate window of the play, where approximately 70% of our acreage lies. With a gross resource potential of more than 11 trillion cubic feet equivalent, we expect the Eagle Ford Shale to add significant production and reserves while enhancing shareholder value."
Pioneer is a technology leader in this play with greater than 2,000 square miles of 3-D seismic data, logs from more than 150 operated wells, proprietary core samples and micro-seismic results. The Company is targeting liquids-rich areas with two rigs currently drilling horizontal wells in Karnes and Dewitt Counties and one well currently awaiting completion. To further accelerate Eagle Ford Shale development, the Company is actively pursuing a joint venture, with an announcement expected by the end of the second quarter of 2010. Plans call for drilling to be aggressively increased to six or seven rigs by the end of 2010, ten rigs by the end of 2011 and 14 rigs by the end of 2012.
Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations primarily in the United States. 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 (including joint venture 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 projects as scheduled, access to and cost of capital, uncertainties about estimates of reserves and resource potential, quality of technical data, and environmental and weather risks, including the possible impacts of climate change. 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 U.S. Securities and Exchange Commission (the "SEC") prohibits oil and gas companies, in their filings with the SEC, from disclosing estimates of oil or gas resources other than "reserves" as that term is defined by the SEC. In this news release, Pioneer includes estimates of quantities of oil and gas using certain terms, such as "resource potential" or other descriptions of volumes of reserves, which terms include quantities of oil and gas that may not meet the SEC's definitions of proved, probable and possible reserves, and which the SEC's guidelines strictly 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. U.S. investors are urged to consider closely the disclosures in the Company's periodic filings with the SEC. Such filings are available from the Company at 5205 N. O'Connor Blvd., Suite 200, Irving, Texas 75039, Attention: Investor Relations, and the Company's website at www.pxd.com. These filings also can be obtained from the SEC by calling 1-800-SEC-0330.
SOURCE: Pioneer Natural Resources Company
Pioneer Natural Resources
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