DALLAS, October 23 /CNW/ - Pioneer Natural Resources Company (NYSE: PXD)
today announced continued success with its drilling program in the Edwards
Trend in South Texas.
Two new fields have been discovered in the trend, bringing total
discoveries in the Edwards expansion area to eight. The two new wells
encountered 150 feet to more than 200 feet of vertical gas pay. An appraisal
well is currently drilling on one of the discoveries where 3-D seismic is
available. Appraisal of the second discovery will begin after 3-D seismic data
has been acquired and interpreted in 2008.
Development drilling is also delivering positive results, with current
net gas production reaching approximately 60 million cubic feet per day
(MMCFPD), a 50% increase since year-end 2006. Average net gas production is
expected to exceed the 30% annual growth rate targeted for 2007 and is
expected to increase approximately 25% next year based on current 2008
drilling plans. Pioneer continues to add new treating capacity to handle the
increasing gas production and is making progress on a 37-mile extension of the
Company's existing 44-mile gathering pipeline.
Pioneer's strong growth from the Edwards Trend reflects a successful 2007
drilling program which has focused primarily on lower-risk development wells
on existing discoveries with 3-D seismic coverage. Pioneer is utilizing
multiple isolation packer devices to fracture stimulate gas pay sections in
most of these wells which adds about $1 million to the cost per well, but
results in a much more effective stimulation yielding both increased
production rates and reserves. Pioneer estimates that the enhanced stimulation
is increasing average recoverable gas reserves per well by approximately 1 to
1.5 billion cubic feet (BCF) to an average of 4.5 to 5 BCF per well.
In the Pawnee Field, Pioneer has applied aggressive restimulation
techniques to a number of older producing wells. After six months, sustained
production continues to average about 2.5 times the rate prior to the
restimulation. Similar to new wells being drilled in the Edwards Trend,
estimated recoverable gas reserves from restimulated Pawnee wells have
increased by an average of 1 to 1.5 BCF per well.
More than 900 square miles of 3-D seismic is being shot over discoveries
drilled during 2006 and 2007 to allow for the more accurate location of
horizontal development wells. Despite weather-related delays, approximately
one-third of the processed data is now in hand and being interpreted. Another
third of the data is expected to be available by the end of the first quarter
with the remainder being processed through the end of 2008.
"The Edwards Trend is one of Pioneer's four onshore core areas in the
U.S. and Tunisia which are delivering consistent production growth and
providing the basis for our confidence in achieving our 12+% production per
share annual growth target over the 2007 through 2010 period," stated Scott
Sheffield, Pioneer's Chairman and CEO.
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 Natural Resources Company 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, third party approvals, the costs and results of drilling
and operations, availability of drilling equipment, Pioneer's ability to
replace reserves, implement its business plans or complete its development
projects 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.
Cautionary Note to U.S. Investors -- The SEC permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves
that a company has demonstrated by actual production or conclusive formation
tests to be economically and legally producible under existing economic and
operating conditions. Pioneer uses certain terms in this release, such as
"recoverable gas reserves" or other descriptions of volumes of reserves
potentially recoverable through additional drilling or recovery techniques
that the SEC's guidelines 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.
For further information:
For further information: Pioneer Natural Resources Company Investors:
Frank Hopkins or Scott Rice, 972-444-9001 or Media and Public Affairs: Susan