Pioneer Natural Resources Company (PXD)

[Timothy Smith]

Midland Basin Update, PXD announced production from three horizontal Wolfcamp D wells in Midland and Martin Counties that produced at very high 24-hour IP rates, although the 30 day average rates show a very steep decline.

The Hutt C #4H in Midland County produced at a 24-hour IP rate of 2,128boe/d, but the 30-day average rate of 856boe/d (69% oil) was just 40% of the well's 24-hour IP. The Scharbauer Ranch #201H in Martin County displayed a similar decline trajectory. PXD's third Wolfcamp D well produced at a 24-hour IP rate of 3,156boe/d (69% oil), which is the highest IP rate from a horizontal well in the Midland Basin, although we do not have any longer-term production data on this well yet.

Wolfcamp D results from other operators show much less of a decrease in 30 day averages relative to the peak 24-hour rates and many of these wells had a higher 30 day average than PXD's wells despite much lower 24-hour IP rates. Although PXD's Wolfcamp D wells are up to 50 miles West of the other activity. PXD's Wolfcamp A and B wells drilled in Martin and Midland Counties showed much more robust 30-day rates relative to PXD's Wolfcamp D wells in this area.