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Pioneer Releases Update on Successful Domestic Development Program
Dallas, Texas, March 2, 2000 -- Pioneer Natural Resources Company (“Pioneer”)(NYSE:PXD) (TSE:PXD) today announced continuing field extension and developmental drilling success in its domestic core areas in the Permian Basin and South Texas.
In the Permian Basin, Pioneer's latest Wolfcamp discovery, the Sugg 1903A #1 (75% WI), is flowing at its allowable rate of 240 barrels of oil per day (BOPD) and 115 thousand cubic feet of gas per day (MCFPD) at a depth of approximately 6,500 feet. This is Pioneer's third Wolfcamp discovery drilled in the past year on the prolific My Way/Lonesome Reef trend incorporating over 23,000 net acres in Irion County, Texas. The initial well, the Sugg 36-1 (100% WI), was completed in January 1999 with an initial potential of 369 BOPD and 250 MCFPD. The second well, the Sugg 46-1 (100% WI), was completed in November 1999 with an initial potential of 515 BOPD and 348 MCFPD. The first two wells are being produced under higher allowable rate limits. The three wells are now on production flowing at a combined rate of 1,100 BOPD and 1,200 MCFPD. The discoveries set up three to four additional wells to be drilled this year. All of the wells are being drilled on structural build-ups defined by 3-D seismic, and Pioneer is actively processing and interpreting new 3-D seismic data to further expand its inventory of drilling locations for future exploration and development.
In Bee County in South Texas, Pioneer continues to aggressively develop the Edwards Reef in its Pawnee field (100% WI). In early 1999, the Company implemented an advanced horizontal development program with significant reductions in estimated drilling costs. Since June 1999, three horizontal extensions and one new well have been drilled using 3-D seismic data with a combined initial rate of 15,500 MCFPD and a stabilized producing rate of 10,655 MCFPD. Field performance has increased from 16,000 to 26,000 MCFPD. A fifth well has been drilled and will begin production within the week. Pioneer is planning five additional horizontal wells this year and is continuing to interpret new data to further expand its inventory of drilling locations.
Development drilling also continues in Pioneer's long-lived domestic crown-jewel properties. In the Spraberry field, Pioneer has three rigs drilling new development wells, and in the West Panhandle and Hugoton fields, Pioneer has four rigs running. In the Bossier play in East Texas, Pioneer is drilling its first operated well and expects to be running two rigs by the end of the month.
Pioneer is a large independent exploration and production oil and gas company in North America, with major operations in the United States, Canada, Argentina and South Africa. Pioneer's headquarters are in Dallas.
Except for historical information contained herein, the statements in this Press 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 Natural Resources Company, are subject to a number of risks and uncertainties which may cause the Company's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of oil and gas prices, product supply and demand, competition, government regulation or action, litigation, the costs and results of drilling and operations, the Company's ability to replace reserves or implement its business plans, access to and cost of capital, uncertainties about estimates of reserves, quality of technical data, and environmental risks. These and other risks are described in the Company's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.
Investor Relations Contact: Susan Spratlen 972-444-9001
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