A new deepwater gas discovery by Pioneer Natural Resources will bring its gas output from the Falcon Nest platform to about 400 MMcf/d over the next couple of years, the company said Wednesday.

The new discovery was made on its Raptor prospect in the Falcon Corridor in the East Breaks area of the deepwater Gulf. Raptor is the third satellite discovery Pioneer is developing as a subsea tie-back to its Falcon field. The other two are Harrier and Tomahawk. Harrier already has been completed and is being tied back to the Falcon field with first production expected in early 2004. Raptor and Tomahawk are being completed with first production expected within 12 months.

To accommodate the Falcon Corridor production, an additional parallel pipeline connecting the Falcon field to the Falcon Nest platform on the Gulf of Mexico shelf is being added, doubling the capacity to 400 MMcf/d. Pioneer expects gross combined daily gas production from Falcon and Harrier to reach 275 MMcf/d and production to approach the full capacity of the system with the addition of production from Raptor and Tomahawk.

During the remainder of 2003, Pioneer said it will continue its deepwater drilling program by participating in the Juno prospect in the Mississippi Canyon area. The Juno well will test a high-potential deep structure and is expected to spud during the fourth quarter. BP will operate the well with 75% working interest, and Pioneer will participate with a 25% working interest. Pioneer is 100% owner and operator of Falcon.

“The dual focus of our deepwater strategy over the last few years, working the lower-risk areas surrounding our discoveries at Falcon and Devils Tower while generating a portfolio of high-potential but higher-risk prospects on deep structures, has positioned us well,” said CEO Scott D. Sheffield. “We have three satellites that we are tying back to the Falcon system, a satellite discovery that we’re appraising for tie-back to Devils Tower, and more prospects to test next year. We’re also excited to be announcing our participation in the Juno well, our first high-impact deep structure test.”

To expand the potential of the Devils Tower area, Pioneer plans to drill an appraisal well on the Triton satellite discovery during the fourth quarter. Pioneer holds a 25% working interest in Devils Tower and Triton and plans to follow the Triton appraisal well with an exploration well on another satellite prospect that also holds potential for subsea tie-back to the Devils Tower infrastructure.

On the Gulf of Mexico shelf, Pioneer also reported that the Samoa well encountered minor gas shows but was not commercially viable and that the Midway prospect (operated by Pioneer with 50% working interest) offshore Texas is currently drilling.

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