Pioneer Resources Updates Production & Acquisition Activity

Pioneer Natural Resources expects that its first quarter 2004 production will be near the top end of its prior guidance range and average approximately 180,000 to 183,000 barrels oil equivalent per day. Production from the Falcon gas system has exceeded expectations for the quarter as the Harrier field began producing earlier in January than originally forecasted. Oil and gas sales from Argentina have exceeded expectations. Demand for gas has remained strong through the summer season, and gas prices may improve as a result of recently announced increases in utility rates that are expected to take effect by mid-year. Oil production from South Africa is at the high end of expectations as a result of an additional cargo shipment during the quarter.

First quarter exploration and abandonment expense is expected to be approximately $72 million to $88 million. Pioneer participated in two deepwater Gulf of Mexico wells during the quarter that were unsuccessful, the Juno prospect (25% working interest) and the Myrtle Beach prospect (10% working interest). Pioneer holds a 12.5% working interest in a well currently drilling on the Thunder Hawk prospect and expects results during the second quarter. Offshore Gabon, Pioneer drilled an unsuccessful wildcat exploration well testing its Dentale prospect on acreage outside the boundaries of its Olowi field. Exploration and abandonment costs for the quarter will also include approximately $15 million to $17 million for seismic related to future exploration activities and administrative expenses.

On April 1, Pioneer expects to close an acquisition of approximately $20 million of Spraberry field properties from a private party. The deepwater Devils Tower field is on schedule for first oil production during the latter part of the second quarter, and two satellite fields in the Falcon gas system, Tomahawk and Raptor, are currently ahead of schedule and are expected to begin producing by the end of the second quarter.

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