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Pioneer Eagle Ford Well Hits Initial Rate of 17 MMcf/d

Pioneer Natural Resources Co. said late last week one of its Eagle Ford Shale wells in South Texas flowed at an initial production (IP) rate of 17 MMcf/d on a 24/64-inch choke with 7,300 pounds per square inch wellhead flowing pressure.

The Robert Crawley Gas Unit #1 well in Live Oak County, which is three miles south of Pioneer's Sinor #5 discovery well, drilled to a "true vertical depth" of 14,000 feet and was completed in a 5,400-foot lateral section with a 16-stage fracture (frac) stimulation. The well currently is producing to sales, Pioneer said.

"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," said CEO Scott Sheffield.

Noting that the IP rate is the highest achieved to date in the play, Sheffield said the well had "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, Pioneer is "actively pursuing a joint venture, with bids expected in the second quarter of 2010." The producer also has realigned some of its asset management teams.

William F. Hannes, formerly executive vice president (EVP) of business development, was named EVP of South Texas operations. The existing South Texas asset team and the newly formed Eagle Ford Shale asset team will report to Hannes.

Danny L. Kellum, formerly EVP of domestic operations, has been named EVP of Permian operations. In the Permian Basin Spraberry Trend, which is Pioneer's largest asset, the company plans to drill 1,000 wells/year by 2012.

Jay P. Still was named EVP of domestic operations. In addition, Chris J. Cheatwood, formerly EVP of geoscience, has been named EVP of business development and technology.

"Considering the magnitude of opportunity we foresee in the Spraberry Trend and Eagle Ford Shale, we have realigned our executive team to optimize our ability to capture and accelerate the value of these strategic assets," said Sheffield.

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