Pioneer Hits Paydirt at 2nd Eagle Ford Shale Well

Pioneer has announced its second significant well in the Eagle Ford Shale in South Texas. The Robert Crawley Gas Unit #1 well, which is located in Live Oak County, Texas, flowed at an initial production rate of approximately 17 million cubic feet of gas per day on a 24/64 inch choke with 7,300 pounds per square inch wellhead flowing pressure. It was drilled to a true vertical depth of approximately 14,000 feet and completed in a 5,400-foot lateral section with a 16-stage fracture stimulation (frac). The well is currently producing to sales.

The new well is located approximately three miles south of Pioneer’s previously announced liquids-rich Sinor #5 discovery well. The Eagle Ford Shale formation at the Crawley #1 location is 1,000 feet deeper and has a 30% thicker pay zone than at the Sinor #5 location.

Scott Sheffield, Chairman and CEO, stated, "As a continuation of our multi-well program to assess our acreage position, the objective of the Crawley #1 was to test productivity towards the dry gas window in a deeper, thicker Eagle Ford Shale section with a longer lateral and additional frac stages. With the highest gas rate reported to date in the play, the Crawley #1 exceeded our expectations and confirms that dry gas wells provide strong economics at today’s prices. These results increase our confidence that the Eagle Ford Shale will be very prolific in both the liquids-rich and dry gas portions of our extensive acreage position and will add significant value for our shareholders.”

To accelerate Eagle Ford Shale development, the Company is actively pursuing a joint venture, with bids expected in the second quarter of 2010. In response to the joint venture effort and in preparation for an aggressive development drilling program to be initiated in this play, Pioneer formed a new asset team to focus solely on the Eagle Ford Shale. Management responsibilities within Pioneer associated with the establishment of this team are detailed in a separate press release issued by the Company today.