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Pioneer Replaces 357% of 2007 Production for $15.40 Per Barrel Oil Equivalent

Posted on: Wednesday, 6 February 2008, 09:01 CST

Pioneer Natural Resources Company (NYSE:PXD) today announced that as of December 31, 2007, its total proved oil and gas reserves were 964 million barrels oil equivalent (MMBOE). During 2007, the Company increased proved reserves by 148 MMBOE, replacing 357% of production at an average finding and development cost of $15.40 per barrel oil equivalent (BOE). The reserve additions were primarily attributable to successful drilling in Pioneer's core onshore areas (Spraberry, Raton, Edwards Trend and Tunisia) and recent acquisitions in the Spraberry, Raton and Barnett Shale fields.

Approximately 97% of Pioneer's proved reserves are in the United States, and 62% of reserves are proved developed. Approximately 51% of the Company's reserves are natural gas and 49% are oil and other liquids. Pioneer's reserves are long-lived with a reserves-to-production ratio of approximately 23 years.

Drillbit finding and development cost was $17.85 per BOE. Excluding the costs associated with the drilling of proved undeveloped reserves in the Spraberry and Raton fields, drillbit finding and development cost was approximately $12 per BOE.

Scott D. Sheffield, Pioneer's Chairman and CEO, stated, "Our finding and development cost for 2007 of $15.40 per BOE was essentially at the midpoint of our target range of $12 to $18 per BOE and significantly below last year's result, despite the upward pressure on drilling and development costs throughout the year. Our improved drillbit finding cost and strong reserve replacement results demonstrate the quality of our core assets and the much-appreciated commitment of our employees."

Netherland, Sewell and Associates, Inc. (NSA), an independent reserve engineering firm, audited the proved reserves of significant fields. NSA's audit covered properties representing approximately 86% of Pioneer's total proved reserves at year-end 2007.

Year-end proved reserves and costs incurred are detailed in the attached supplemental schedule.

Pioneer Natural Resources Company is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States, South Africa and Tunisia. For more information, visit Pioneer's website at www.pxd.com.

Except for historical information contained herein, the statements in this News Release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of Pioneer Natural Resources Company are subject to a number of risks and uncertainties that may cause Pioneer's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of oil and gas prices, the assumptions underlying production forecasts, uncertainties about estimates of reserves, and quality of technical data. These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission. In addition, Pioneer may be subject to currently unforeseen risks that may have a materially adverse impact on it. Pioneer undertakes no duty to publicly update these statements except as required by law.

"Finding and development cost per BOE" means total costs incurred divided by the summation of annual proved reserves, on a BOE basis, attributable to revisions of previous estimates, purchases of minerals-in-place and discoveries and extensions. Consistent with industry practice, future capital costs to develop proved undeveloped reserves are not included in costs incurred.

"Drillbit finding and development cost per BOE" means costs incurred excluding acquisitions divided by the summation of annual proved reserves, on a BOE basis, attributable to revisions of previous estimates, and discoveries and extensions. Consistent with industry practice, future capital costs to develop proved undeveloped reserves are not included in costs incurred.

"Reserve replacement," or the replacing of production, is the summation of annual proved reserves, on a BOE basis, attributable to revisions of previous estimates, purchases of minerals-in-place and discoveries and extensions divided by annual production of oil, NGLs and natural gas, on a BOE basis.

PIONEER NATURAL RESOURCES COMPANY

UNAUDITED SUPPLEMENTAL INFORMATION

Year Ended December 31, 2007

United

States

Canada

Africa

Total

Proved reserves:

Oil (MBbls):

Balance, January 1, 2007

258,195

1,861

8,047

268,103

Revisions of previous estimates

11,759

(110

)

236

11,885

Purchases of minerals-in-place

9,584

-

-

9,584

Discoveries and extensions

18,647

283

24,477

43,407

Production

(6,804

)

(98

)

(2,382

)

(9,284

)

Sales of minerals-in-place

-

(1,936

)

(11,771

)

(13,707

)

Balance, December 31, 2007

291,381

-

18,607

309,988

Natural Gas Liquids (MBbls):

Balance, January 1, 2007

148,530

338

-

148,868

Revisions of previous estimates

3,812

29

-

3,841

Purchases of minerals-in-place

10,094

-

-

10,094

Discoveries and extensions

4,045

95

-

4,140

Production

(6,771

)

(136

)

-

(6,907

)

Sales of minerals-in-place

-

(326

)

-

(326

)

Balance, December 31, 2007

159,710

-

-

159,710

Natural Gas (MMcf):

Balance, January 1, 2007

2,685,961

173,509

68,357

2,927,827

Revisions of previous estimates

35,542

(18,778

)

(5,048

)

11,716

Purchases of minerals-in-place

184,478

-

-

184,478

Discoveries and extensions

131,277

62,263

4

193,544

Production

(132,840

)

(16,295

)

(1,954

)

(151,089

)

Sales of minerals-in-place

(1,363

)

(200,699

)

-

(202,062

)

Balance, December 31, 2007

2,903,055

-

61,359

2,964,414

Equivalent Barrels (MBOE):

Balance, January 1, 2007

854,385

31,117

19,440

904,942

Revisions of previous estimates

21,495

(3,210

)

(605

)

17,680

Purchases of minerals-in-place

50,424

-

-

50,424

Discoveries and extensions

44,571

10,755

24,478

79,804

Production (a)

(35,715

)

(2,950

)

(2,708

)

(41,373

)

Sales of minerals-in-place

(227

)

(35,712

)

(11,771

)

(b)

(47,710

)

Balance, December 31, 2007

934,933

-

28,834

963,767

Costs incurred for oil and gas producing activities ($000):

Property acquisition costs:

Proved

$

331,526

$

83

$

-

$

331,609

Unproved

200,767

3,620

718

205,105

532,293

3,703

718

536,714

Exploration costs

335,778

32,160

128,766

496,704

Development costs

1,058,259

64,583

120,963

1,243,805

Total costs incurred

$

1,926,330

$

100,446

$

250,447

$

2,277,223

Reserve replacement percentage (c)

326

%

256

%

882

%

357

%

Finding and development costs per BOE of proved reserves added (d)

$

16.54

$

13.31

$

10.49

$

15.40

(a)

Production includes 2,950 MBOE related to discontinued operations and 2,891 MBOE related to field fuel.

(b)

Represents the reserves associated with the Tunisian government's election to participate in 50 percent of the Jenein Nord concession.

(c)

The summation of annual proved reserves, on a BOE basis, attributable to revisions of previous estimates, purchases of minerals-in-place and discoveries and extensions divided by annual production of oil, NGLs and natural gas, on a BOE basis.

(d)

Total costs incurred divided by the summation of annual proved reserves, on a BOE basis, attributable to revisions of previous estimates, purchases of minerals-in-place and discoveries and extensions. Consistent with industry practice, future capital costs to develop proved undeveloped reserves are not included in costs incurred.

Source: Business Wire

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