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Pioneer Announces Minimal Impact from Hurricane Rita
DALLAS--(BUSINESS WIRE)--Sept. 28, 2005--Pioneer Natural Resources Company (NYSE:PXD) announced today that its Canyon Express and Falcon Corridor gas production facilities in the deepwater Gulf of Mexico resumed operations on September 26 after being evacuated beginning September 20 in advance of Hurricane Rita. The Company's net gas production from these facilities is expected to achieve pre-hurricane levels of approximately 60 million cubic feet per day ("MMcfpd") and 150 MMcfpd, respectively, later this week.
The Company's net production from the deepwater Devils Tower field, which was averaging approximately 5,000 barrels per day of oil and 5 MMcfpd of gas prior to Hurricane Katrina, remains shut in. Damage to the spar from Hurricane Katrina was minimal and has been repaired, and there was no further damage from Hurricane Rita. However, production cannot resume until operations have been restored at Chevron's Empire pipeline terminal.
On the shallow shelf of the Gulf of Mexico, Pioneer's pre-hurricane net production totaled approximately 3,000 barrels oil equivalent per day ("Boepd"). Of this volume, approximately 2,400 Boepd is expected to be producing by the end of this week. The remaining 600 Boepd will not be returned to production due to the loss of the Company's East Cameron 322 platform. The financial impact associated with the loss of East Cameron 322 is under evaluation, but will not be known until a subsea assessment of the damage and an estimate of abandonment costs can be completed.
Pioneer maintains business interruption insurance to limit the impact of production interruptions extending beyond 45 days as well as physical damage insurance.
The Gulf of Mexico volume expected to remain shut in at the end of this week represents less than 4% of the Company's worldwide daily oil and gas production and approximately 15% of its total Gulf of Mexico output.
Exploration drilling has resumed on the deepwater Clipper prospect after being suspended for Hurricane Rita. Pioneer now expects to spud its first shelf exploration well of a five-well program in late October due to rig delays caused by the two hurricanes.
Pioneer is a large independent oil and gas exploration and production company with its headquarters in Dallas, TX and operations in the United States, Argentina, Canada and Africa. For more information, visit Pioneer's website at www.pioneernrc.com.
Except for historical information contained herein, the statements in this News 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 are subject to a number of risks and uncertainties, which 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, the accuracy of damage assessments and recovery plans prepared by Pioneer and third parties, availability of equipment and weather risks. These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.
CONTACT: Pioneer Natural Resources Company, Dallas Investors: Frank Hopkins or Chris Paulsen, 972-444-9001 or Media and Public Affairs: Susan Spratlen, 972-444-9001 SOURCE: Pioneer Natural Resources Company
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