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Pioneer Announces Two Successful Gulf of Mexico Wells
Dallas, Texas, October 31, 2001-- Pioneer Natural Resources Company (“Pioneer”) (NYSE:PXD) (TSE:PXD) today announced an oil discovery on the Ozona Deep prospect in the deepwater Gulf of Mexico and a successful appraisal well on the Stirrup discovery on the Gulf of Mexico shelf. The Ozona Deep discovery well was drilled in 3,280 feet of water in Garden Banks block 515 to a measured depth of 26,352 feet and encountered approximately 345 feet of net oil pay in two primary intervals. The well was logged, fluid samples were taken for analysis, and the well will be temporarily suspended without further testing. Appraisal plans for 2002 will be finalized following the analysis of the data gathered in the discovery well. Pioneer has a 32% working interest (WI) in the well and Marathon Oil Company (NYSE: MRO) has a 68% working interest and is operator.
Scott D. Sheffield, Chairman and CEO, stated, “Ozona Deep has the potential to become Pioneer's fifth major project to add significant future production, the fourth in the deepwater Gulf of Mexico. We have participated in 17 deepwater wells during the last three years, 13 of which have been successful. In mid-2002, we expect to begin to see the impact of this success when the Canyon Express system comes onstream, followed by new production from Devils Tower and Falcon in early 2003.”
The Stirrup #2 appraisal well (Mustang Island block 861), the initial test of a second large fault block on the Stirrup structure, found three productive sequences in the middle Frio formation. The well was drilled to a measured depth of 18,091 feet and production casing has been run and cemented. The discovery well was announced in July and temporarily suspended pending fabrication of facilities which is underway. First production is expected in April, 2002. The Stirrup #2 well has been temporarily suspended, and the third exploratory well is currently drilling to test a large structural ridge immediately adjacent to the two productive fault blocks tested to date. Pioneer has a 25% WI in the 5,600-acre unit that includes the Stirrup field.
Pioneer also announced that the well drilled on the Malta prospect on the Gulf of Mexico shelf encountered wet sands and will be plugged and abandoned. Considering the net effect of these results, Pioneer updated its outlook for fourth quarter 2001 exploration and abandonment expenses to a range of $20 million to $30 million.
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 that 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, volatility of oil and gas prices, product supply and demand, competition, government regulation or action, litigation, the costs and results of drilling and operations, Pioneer's ability to replace reserves, implement its business plans, or complete its development projects as scheduled, 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 Pioneer'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 ©2001 Pioneer Natural Resources Company
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