Pioneer Provides Update on Impact of Hurricane Ivan

Pioneer Natural Resources reports the impact of downtime related to Hurricane Ivan on third quarter production. As previously announced, production from two deepwater Gulf of Mexico projects, Canyon Express and Devils Tower, was shut in as the hurricane entered the Gulf, and following the hurricane, damage to production facilities and downstream pipelines prevented the Company and its partners from resuming production from the projects, resulting in a reduction to Pioneer's third quarter production of approximately 400,000 barrels oil equivalent. As a result, third quarter daily production is expected to average approximately 179,000 barrels oil equivalent.

Production from the Canyon Express system resumed over the weekend, and Pioneer expects its net rates to be limited to between 60% and 70% of maximum rates until repairs to subsurface communications can be reestablished with one of six producing wells. The vessel with equipment necessary to reestablish communication is expected to be onsite this week.

Production from the Devils Tower field remains shut in. The topsides of the spar sustained significant damage during the hurricane, and Pioneer expects that production from the three wells that were on line before the storm will resume in late October to mid-November. A fourth well, with completion activities near the point of first production before the storm, is expected to begin producing before the end of the year. The platform rig must be repaired before completion activities can continue on four additional wells previously drilled to develop the field. The time required to complete the rig repairs has not yet been determined; however, Pioneer maintains business interruption insurance designed to restore, after a 45-day waiting period, the expected cash flow from the project, including expected cash flow from the three producing wells and the five wells not yet on production.

Sidetrack operations announced in September on Pioneer's deepwater Harrier field are underway, having experienced only slight weather delays.

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