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Pioneer Announces Successful Appraisal of Devil's Tower Deepwater Discovery and Provides Update on other U.S. Exploration

Dallas, Texas, June 21, 2022 -- Pioneer Natural Resources Company (“Pioneer”)(NYSE:PXD) (TSE:PXD) announces that the Devil's Tower appraisal well was successful in extending the field into an adjacent fault block and confirms commercial quantities of hydrocarbons. Devil's Tower is located in the deepwater Gulf of Mexico, about 140 miles southeast of New Orleans at Mississippi Canyon Block 773 in 5,610 feet of water.

The appraisal well was drilled to a total depth of 15,000 feet below sea level. The well encountered hydrocarbons in a separate fault block northeast of the discovery well announced February 15, 2000. The appraisal well is under evaluation and a sidetrack well will be drilled to further delineate the accumulation. Pioneer has a 15.83375% working interest in the discovery. The working interest partners are Dominion Exploration & Production, Inc., a subsidiary of Dominion (NYSE:D), (60% working interest and future operatorship), Mariner Energy, Inc. (20% and current operator) and Westport Oil and Gas Company, Inc. (4.16625%).

U.S. Exploration Program Update

Development plans are also moving forward on Aconcagua, Pioneer's first deepwater Gulf of Mexico discovery on Mississippi Canyon 305. The partners in Aconcagua, Elf Exploration, Inc. (Operator - 50%), Pioneer (25%) and Mariner Energy, Inc. (25%), expect to sanction the development project in mid-July.

Aconcagua is one of several deepwater natural gas fields to be included in the recently announced Canyon Express joint subsea development project. Other fields expected to be included in the project are Camden Hills (Marathon Oil operated) and King's Peak (BP Amoco operated). Approximately 500 million cubic feet per day of natural gas production is anticipated to flow to the Elf-operated Virgo platform in Viosca Knoll 823 when joint production begins, anticipated in early 2002. Pioneer's 25% working interest in Aconcagua is expected to represent a 10% interest in the Canyon Express joint development project.

Scott D. Sheffield, Chairman and CEO, stated, “I am proud of our success in the deepwater Gulf of Mexico where we now have four successful wells of a total of five wells drilled. Our plan to be very selective in entering this higher-risk, higher-reward area has paid off nicely with very significant impact to total company production expected within approximately 18 months.”

Pioneer is also currently drilling two wells of a five-prospect program in the Miocene trends of the U.S. Gulf Coast. Both of the currently active wells are located on the Gulf of Mexico shelf. Results from these two wells should be known by mid to late July. A third well, the Outside Island Prospect in South Louisiana, was recently plugged and abandoned after finding non-commercial quantities of gas. Two additional prospects are expected to be drilled in this play later this year.

Pioneer is a large independent oil and gas exploration and production company, 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

Important Legal Information ©2000 Pioneer Natural Resources Company
This information was published Wednesday, June 21, 2022
This page was last updated Wednesday, June 21, 2022

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