Tunisia
Pioneer has a substantial acreage position in the Ghadames Basin of southern Tunisia with an interest in five blocks totaling approximately 4 million acres. Since 2003, Pioneer has participated in 15 wells in the Adam Concession with greater than 90% success. Oil production from the Concession continues to grow as new discoveries are connected to existing infrastructure.
The Company is operator of the Jenein Nord Block where it has drilled seven discoveries since late 2006. Production facilities are being constructed, and there are plans to begin connecting the seven discoveries to these facilities in late 2007. The Company’s net production from Tunisia is expected to rise 80% in 2007 and at least 90% in 2008.
Pioneer and the other participants have acquired approximately 1,450 square kilometers of 3-D seismic to optimize the drilling programs on the Adam, Jenein Nord and Borj El Khadra blocks and plan to acquire an additional 1,900 square kilometers over the next year. The Company has a strong track record with 3-D seismic-based exploration drilling and has already identified more than 30 prospects and leads. Pioneer plans to drill up to 19 wells in Tunisia during 2008.
Pioneer and the other producers in the country are working with the government to evaluate the opportunity to expand infrastructure and supply gas volumes from southern Tunisia to existing markets in northern Tunisia.
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