Pioneer Initiates Gas Production Offshore South Africa



    DALLAS, October 4 /CNW/ - Pioneer Natural Resources Company (NYSE:  PXD)
today announced the start up of production from the South Coast Gas project
(SCG) in Block 9, offshore South Africa. Pioneer holds a 45% working interest
in the project, and PetroSA, the South African national oil company, has a 55%
working interest and is operator. Pioneer's production from the project is
sold to PetroSA under a gas and condensate sales agreement and will provide
feedstock for PetroSA's onshore gas-to-liquids (GTL) plant in Mossel Bay. The
prices to be received for both gas and condensate sold under the sales
agreement are tied to Brent oil prices.

    Gas and condensate production from five wells is expected to reach
approximately 50 million cubic feet of gas equivalent per day (MMCFEPD) by the
end of 2007. Within 12 to 18 months, production from the project is expected
to rise significantly as oil production operations are completed at the Sable
field and Sable gas production is tied into the project.

    As a result of higher oil prices, the oil production life of the Sable
field has been extended, and gas will continue to be reinjected into the field
to enhance oil recovery. Gas development drilling in the Sable field is
complete, and when Sable gas production is tied into SCG in late 2008 or early
2009, the project is expected to reach peak production of 100 MMCFEPD to 120
MMCFEPD. On average, gas condensate is expected to represent approximately 20%
to 30% of total SCG production.

    "The South Coast Gas project is an important component of our 12+%
production per share annual growth target over the 2007 through 2010 period,
and we're very pleased that the development phase of the project has been
completed in the time expected. We appreciate the efforts of PetroSA in
accomplishing this goal, and look forward to continuing our successful
relationship," stated Scott Sheffield, Pioneer's Chairman and CEO. "With the
completion of SCG and considering that a majority of the capital costs related
to our Oooguruk development on the North Slope will be invested by the end of
2007, we expect our 2008 drilling and development budget to decrease
significantly as compared to 2007 to approximately $1 billion, primarily
focused on Pioneer's four core areas - Spraberry, Raton, Edwards and Tunisia."

    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, the ability to obtain environmental and
other permits and the timing thereof, other government regulation or action,
third party approvals, international operations and associated international
political and economic instability, Pioneer's ability to implement its
business plans uncertainties about estimates of reserves, the assumptions
underlying production forecasts quality of technical data, environmental and
weather risks, acts of war or terrorism. These and other risks are described
in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and
Exchange Commission.




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
Spratlen, 972-444-9001

Organization Profile

PIONEER NATURAL RESOURCES COMPANY

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890