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Pioneer Provides Update on Oooguruk Field Development
DALLAS--(BUSINESS WIRE)--Feb. 25, 2008--Pioneer Natural Resources Company (NYSE:PXD) today announced that development activities at its Oooguruk field on the North Slope in Alaska are progressing on schedule and the production processing and services agreement with the Kuparuk River Unit owners has been completed and signed. Under the agreement, production from Oooguruk will be transported by flowline to facilities at the Kuparuk River Unit for processing and subsequent transport through the Trans Alaska Pipeline System. The Kuparuk River Unit is operated by ConocoPhillips Alaska, Inc.
The production handling agreement is the first of its kind between the owners of two North Slope units and an important milestone for the Oooguruk project which will be the first field operated by an independent oil company in the history of the North Slope.
Pioneer expects first oil production from Oooguruk during the first half of 2008, with first sales by mid-year. Production is expected to peak during 2010 at 15,000 to 20,000 gross barrels of oil per day from approximately 40 development wells (approximately half of the wells will be producing wells and half will be injection wells). Pioneer operates the field with a 70% working interest. ENI Petroleum Co. Inc. holds a 30% working interest in the field. From exploration wells to first production, Pioneer expects to bring Oooguruk on line in five years, an unprecedented cycle time for a new, offshore field on the North Slope.
"We are very appreciative of the cooperation received from the owners of the Kuparuk River Unit in completing this production handling agreement," stated Scott Sheffield, Pioneer's Chairman and CEO. "Oooguruk production facilities are in place, and drilling is underway with plans to drill 13 to 15 wells during 2008. We expect the project to generate steady growth as more wells are drilled each year through 2010. Steady growth from this project and our other assets is the basis for the 12+% growth target we've set for company-wide annual compound average production per share growth through 2011."
Pioneer Natural Resources Company is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, 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 about Pioneer Natural Resources Company 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, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, third party approvals, 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 (including its plan to repurchase stock) or complete its development projects as scheduled, access to and cost of capital, 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.
CONTACT: Pioneer Natural Resources Company
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