Pioneer Begins Development of Gas Offshore South Africa
12/20/05
DALLAS, Dec 20, 2005 (CCNMatthews via COMTEX) --
Pioneer Natural Resources Company (NYSE:PXD) announced today that development activities have begun on its South Coast Gas project offshore South Africa. Pioneer is partnering with PetroSA, the National Oil Company of South Africa, to jointly develop the South Coast gas fields to provide feedstock for PetroSA's onshore gas-to-liquids (GTL) plant in Mossel Bay. Both companies have board approval for the project. Pioneer holds a 45% working interest in the project, and PetroSA has a 55% working interest and is operator.
Since 2003, Pioneer and PetroSA have been producing oil from the Sable field while reinjecting associated gas. The South Coast Gas project will include the subsea tie-back of gas from the Sable field and six additional gas accumulations to the existing production facilities on the F-A platform for transportation via existing pipelines to the GTL plant. Production is expected to begin during the second half of 2007 and increase to an average of approximately 100 million cubic feet per day of gas and 3,000 barrels per day of condensate over the initial phase of the project through 2012.
Engineering plans for subsea systems, pipelines, umbilicals and surface equipment modification are currently being finalized. Development drilling is scheduled to begin in January 2006.
Scott Sheffield, Pioneer's Chairman and CEO, stated, "We're very pleased to get gas development offshore South Africa underway. The South Coast Gas project will provide a growing production profile beginning in 2007 and is a good example of an important component of our strategy for adding value - seeking lower-risk opportunities to develop known oil and gas resources with strong economic returns."
Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, with operations in the United States, Argentina, Canada and Africa. For more information, visit Pioneer's website at www.pioneernrc.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 are subject to a number of risks and uncertainties which 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, product supply and demand, government regulation or action, third party approvals, international operations and associated international political and economic instability, litigation, the costs and results of drilling and operations, availability of drilling equipment, Pioneer's ability to implement its business plans or complete its development projects as scheduled, access to and cost of capital, uncertainties about estimates of reserves, quality of technical data, environmental and weather risks, acts of war or terrorism. These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.
SOURCE: Pioneer Natural Resources Company
Pioneer Natural Resources Company, Dallas Investors Frank Hopkins or Chris Paulsen, 972-444-9001 Media and Public Affairs Susan Spratlen, 972-444-9001
Copyright (C) 2005 CCNMatthews. All rights reserved.
