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Pioneer Sanctions Sable Field Development Offshore South Africa, Continues South Africa Exploration

Dallas, Texas, June 18, 2022 – Pioneer Natural Resources Company ("Pioneer") (NYSE:PXD) (TSE:PXD) today announced that it has sanctioned the development of the Sable field offshore South Africa. Oil production is scheduled to begin in the first quarter of 2003 with expected initial gross flow rates of up to 40,000 barrels of oil per day from two reservoirs with 25 million barrels of estimated recoverable oil reserves. Pioneer has a 35% working interest in the field, SOEKOR E and P (Pty) Ltd ("Soekor"), the government-owned company, has a 60% working interest and is the designated operator of the field, and Petroleum Limited has the remaining 5%.

Scott D. Sheffield, Pioneer Chairman and CEO, stated, "Our successful partnership with Soekor has led to Pioneer achieving the honor of being the first foreign company scheduled to produce oil in South Africa, and Pioneer's share of Sable field production is expected to increase our worldwide oil production by over 25%. We are excited to be taking this first step in what we expect will be many years of success in South Africa."

The Sable field is located in 100 meters of water approximately 95 kilometers off the southern coast of South Africa. The field will be developed with six subsea wells tied back to a floating production, storage and offloading (FPSO) vessel. Bluewater (UK) Ltd. (“Bluewater”) has been awarded a contract to provide and operate an FPSO with capacity to process 60,000 barrels of oil per day, re-inject 80 million cubic feet of gas per day and recover natural gas liquids. Bluewater will deploy the FPSO Glas Dowr to the Sable field and is responsible for day-to-day operations including associated shuttle tanker operations.

Associated gas will be re-injected to improve liquids recovery but could be produced at a later time as part of a larger gas development project currently being evaluated. Sable will be the second FPSO oil development in the area. The Oribi and Oryx fields also operated by Soekor, located 18 kilometers east of Sable, are of similar size and have been producing for three years via an FPSO. The area offers several similar oil prospects and undeveloped oil discoveries that could offer future opportunities and extend the utilization of the floating facilities.

In addition, Pioneer has completed the testing of the E-BB2 gas well. The well was drilled approximately 120 kilometers south of Mossel Bay to test the lateral continuity and productivity of widespread gas-bearing sands in the center of the Bredasdorp Basin. The well found over 325 feet of gas-bearing sandstone in five primary zones. Three of the zones were perforated and tested. Two of the zones exhibited low permeability while a third zone flowed at a sustained daily rate of 10 million cubic feet of gas and 800 barrels of liquids. Results of this well and other wells drilled in this trend are being assessed as part of the larger gas development project currently being evaluated. Pioneer has a 40% WI and operated the well. Soekor has the remaining 60% and is the designated operator of the tract.

Pioneer is also preparing to drill an appraisal well to its Boomslang discovery along the southern flank of the Bredasdorp Basin. The Boomslang #2 well is located approximately two kilometers southwest of the discovery well which tested at a combined rate of 3,120 barrels of oil, 300 barrels of condensate and 26 million cubic feet of gas per day. Pioneer is the operator of the tract with a 49% working interest and Soekor has the remaining 51%. Pioneer has also recently completed the acquisition of a 1,100 square-kilometer (460 square-mile) 3-D seismic survey of the Boomslang trend area where several other prospects have been identified.

Pioneer is a large independent oil and gas exploration and production company with operations in the United States, Canada, Argentina, South Africa and Gabon. Pioneer's headquarters are in Dallas. For more information, visit Pioneer's website at www.pioneernrc.com.

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.


Important Legal Information ©2001 Pioneer Natural Resources Company
This information was published Monday, June 18, 2022
This page was last updated Monday, June 18, 2022

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