Pioneer Suffers Big Loss in Q1 Due to Negative Project and Lease Sales

Pioneer Oil and Gas announced financial results for the first quarter of fiscal 2008. Revenues for the period ending December 31, 2007 (first quarter of fiscal 2008) were $265,427 as compared to revenues $3,085,690 for the first quarter of fiscal 2007 (period ending December 31, 2006).

The Company reported a net loss of $71,413 or $.01 per share as compared to net income of $1,757,368 or $.24 per share for the first quarter of fiscal 2007. The decrease in revenues was primarily due to negative Project and Lease Sales Income and the fact that the Company has disposed of most of its operated oil and gas properties. The Company's primary focus has become maximizing Project and Lease Sale Income and increasing royalty income as a result of wells drilled on the Company's properties. Project and Lease Sales Income, while often substantial, usually takes several months or even years to realize and quarterly results may not be indicative of the Company's true value.