Pioneer Natural Resources expects to see its 2003 worldwide oil and gas production increase 45% this year over 2002 levels, to about 165 MMboe/d. The Dallas-based producer has committed to an aggressive drilling program, scheduling nearly twice as many wells in 2003 over last year.

The strongest growth will come from Pioneer’s production start-up in the second quarter at its deepwater Gulf of Mexico Falcon natural gas project, as well as a South African oil project. Pioneer said it also expects to achieve peak production rates this year from the Canyon Express field in the Gulf, as well as core growth from assets in the United States, Canada and Argentina.

Pioneer’s budget for oil and gas producing activities is expected to range between $450 million to $550 million this year, with 35% budget for exploration and the rest for development drilling and facility costs. Nearly 60% of the budget will be spent on U.S. projects; 9% will go toward Argentina and Canada projects; and 22% is slated to be spent in Africa. The 2003 capital budget includes $35 million of remaining development capital to complete the Falcon and Devils Tower development projects in the deepwater Gulf and the Sable oil project offshore South Africa.

This year, Pioneer plans to drill in the Gulf, both on and offshore, as well as in Alaska, Canada, Gabon, Tunisia and South Africa. In 2004, Pioneer said it would spend $172 million, while in 2005, it will spend another $151 million for development drilling and costs related to its proved undeveloped reserves.

In 2002, Pioneer reported net income of $152.2 million, or $1.53 a share, compared with 2001 net income of $100 million ($1/share). Compared to 2001, the Company’s 2002 total revenues and other income decreased by $159.0 million, or 18%, including a $145.2 million decrease in oil and gas revenues. Last year, capital investment activities increased proved reserves to 736.7 MMboe, reflecting the effects of acquisitions. The drilling program resulted in replacement of 258% of production at an acquisition and finding cost per boe of $6.30.

©Copyright 2003 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.