Pioneer is actively developing its onshore assets and other recent discoveries.

Canyon Express
The Canyon Express is the largest North American gas project under development and combines production from three deepwater Gulf of Mexico discoveries, including Pioneer’s Aconcagua and Camden Hills fields, developed with subsea wellheads tied back 55 miles to a shelf production platform. The project is being developed with a capacity to deliver 500 million cubic feet of gas per day by the summer of 2002. Pioneer owns a 23.5% interest in the Canyon Express project, which is expected to increase its North American gas production by 40% to 45% from early 2002 levels.

Pioneer’s first well offshore South Africa confirmed the presence of commercial oil reserves resulting in the development of the Sable oil field. The field is being developed with a floating production, storage and offloading vessel (FPSO), and first production is expected in late 2002 or early 2003 at daily rates of 30 to 35 thousand barrels per day. With Pioneer’s 40% working interest, its worldwide oil production is expected to increase more than 35% from current levels. The Company has also discovered oil and gas on its Boomslang prospect offshore South Africa and plans to drill two exploration wells during 2002 to further test prospects in the area.

Pioneer discovered the Falcon field in the deepwater Gulf of Mexico in April of 2001. The exploratory well found two gas-bearing sands and was successfully sidetracked to a downdip location to test the extent of the reservoir. The Falcon field, located 100 miles east of Corpus Christi, was approved for development in October 2001 and will be produced via a two-well subsea development tied back to a host platform located on the shelf approximately 30 miles away. Pioneer expects first gas production in early 2003, with peak rates expected to reach 175 million cubic feet equivalent per day. Pioneer holds a 45% working interest in the field and the Company’s total North American gas production is expected to increase 25% to 30% from early 2002 levels when the project comes on stream.

Devils Tower
The Devils Tower discovery announced in February 2000 was Pioneer’s second in the deepwater Gulf of Mexico. An appraisal well and an associated sidetracked location were also successful, and development of the field is under way with first production expected in the second quarter of 2003. The field will be developed using a truss spar with slots for eight dry tree wells and the flexibility to accommodate future subsea tie-backs. Pioneer’s 25% working interest in field production is expected to increase the Company’ s current worldwide oil production by 25% to 30%.

Stirrup & Oneida
The Stirrup field and the Oneida field, deep gas discoveries on the Gulf of Mexico shelf, are being developed for first production in 2002, and the Company plans to drill wells in the U.S. and Canada to further develop its core properties onshore.

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