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Pioneer Replaces 178% of Production at $2.21 per Barrel Oil Equivalent in 1999
Dallas, Texas, January 26, 2000 -- Pioneer Natural Resources Company (“Pioneer”)(NYSE:PXD) (TSE:PXD) announced that as of December 31, 1999, its total proved oil and gas reserves were 605 million barrels oil equivalent (MMBOE) including 293 million barrels (MMBLS) of crude oil and natural gas liquids and 1,876 billion cubic feet (BCF) of natural gas. Discounted future net cash flow (present value at 10%) was $2.9 billion at year end. In 1999, the Company added 91 MMBOE of proved reserves and, as part of its financial strategy to reduce debt and streamline its overall cost structure, sold 111 MMBOE of oil and gas reserves. Proved developed reserves account for 81% of total proved reserves.
Proved reserves at December 31, 1999 break down as follows:
Pioneer replaced 178% of its production during 1999 at an all-in finding cost of $2.21 per BOE. Costs incurred during 1999 totaled $201 million, including $36 million for acquisitions and $165 million for development and exploration activities. Excluding acquisitions, 1999 finding cost was $1.97 per BOE. Finding costs related to acquisitions for the year was $4.90 per BOE. Pioneer's year-end depreciation, depletion, and amortization rate for oil and gas properties was $4.32 per BOE.
During 1999, Pioneer drilled 304 wells with 93% success worldwide. Domestic drilling included 138 Spraberry oil wells, 35 wells in the West Panhandle gas field and 41 wells in other domestic fields. Internationally, 78 of 90 wells were successful. International drilling was primarily focused on Pioneer's core areas in the Neuquen Basin in Argentina and the Northeast British Columbia/Alberta area in Canada.
Scott D. Sheffield, Chairman and CEO, stated, “We are very pleased with the results of our 1999 drilling program, considering the limited capital available early in the year as a result of low oil and gas prices. For 2000, we plan capital expenditures of $250 million, a 25% increase over 1999. I am optimistic that our capital expenditures program will expose us to significant development and exploration potential and allow us to confirm, with appraisal wells, our South Africa and two Deepwater Gulf of Mexico discoveries.”
Pioneer is one of the largest independent exploration and production oil and gas companies 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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