Pioneer Drilling Increases Land Rig Fleet by Two

Pioneer Drilling Company has agreed to purchase two mechanical land drilling rigs from Texas Interstate Drilling Company, L.P. for $2.5 million in cash and 477,000 shares of common stock; for a total transaction value of approximately $4.6 million. The transaction is expected to close on August 1, 2003. Included in the purchase are rig-hauling trucks, trailers, vehicles, spare drill pipe and yard equipment. Both rigs are designed to drill to depths of 9,000 to 12,500 feet and are currently operating in North Texas under contract.

Michael E. Little, Pioneer Drilling's Chairman and Chief Executive Officer, stated, "We are pleased to be expanding into a new region for Pioneer and adding two more rigs to our fleet. These rigs, a Brewster N-46 and a Mid- Continent U-36A, are solid workhorse rigs that are operating in the Barnett Shale play in North Texas. We anticipate adding rigs to this new division, similar to the way we expanded our operations into East Texas in 2001."