Pioneer Natural Resources Co. has set a new record for quarterly gas production in North America, announcing ahead of its earnings report that it produced 48 Bcf of gas in the second quarter, a 39% sequential increase. Deepwater Gulf of Mexico (GOM) production from its Canyon Express and Falcon gas projects matched the Dallas-based producer’s expectations, and will put its quarterly worldwide oil and gas production at 14.5 MMboe.

According to a Lehman Brothers analysis of preliminary second quarter production, which was released earlier this month, Pioneer led all domestic producers, building its gas production volumes up 139% from a year ago (see Daily GPI, July 11). In the survey, Pioneer was expected to increase its second quarter sequential production by 47% from the first quarter, which would be 8% higher than Pioneer’s numbers on Thursday.

First production from Pioneer’s Harrier field, a Falcon satellite, is expected in early 2004. Well completion activities are scheduled to begin in August, and Pioneer plans to drill two additional satellite prospects, Tomahawk and Raptor, under the same rig contract. The Devils Tower project, another deepwater development, remains on schedule for start-up during the first quarter of 2004. Both projects were impacted by recent severe weather and strong currents in the Gulf of Mexico, but required no “meaningful” schedule changes, according to the company. However, Pioneer noted that “future weather-related delays, if extensive, may result in unavoidable schedule changes.”

Production from the Aconcagua field in the GOM “has met expectations and total proved reserves are unchanged,” but Pioneer said that recent well pressure data indicates that a future sidetrack “will likely be required to fully produce the proved gas reserves.” Pioneer has a 23.5% interest in the Canyon Express gas gathering system in the deepwater, which links wells in the Aconcagua, Camden Hills and Kings Peak gas fields to the Canyon Station platform located in Main Pass 261. Pioneer had net production of 95 MMcf/d of the project’s estimated 500 MMcf/d production in first quarter 2003 (see Daily GPI, April 1).

Hurricane Claudette’s production cutbacks were minimal, Pioneer said. Employees were evacuated from several shallow-water platforms, but, with production from these fields averaging less than 1,000 boe/d, Pioneer expected a minimal impact on total production. The deepwater Falcon gas field production was reestablished early Thursday. The impact, while not material, will be included in third quarter production guidance expected to be issued later this month. The company is scheduled to release its quarterly earnings on July 30.

Worldwide, Pioneer’s Sable field oilfield development offshore South Africa now is expected in August, according to management. The owner of the floating production facility that is leased by Pioneer and its partners to handle field production encountered “unexpected” problems with the new compression equipment that required extensive reconditioning, and oil sales now are expected late in the third quarter, as soon as enough inventory has been built to offload for the first shuttle delivery to onshore facilities.

Pioneer’s second quarter realized price for gas, including the effects of hedges, is expected to average approximately $4.05 to $4.15/Mcf. Its realized price for oil, including the effects of hedges, is expected to average approximately $24.20 to $24.30/bbl while its price for natural gas liquids is expected to range from $17.85 to $17.95/bbl.

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