PIONEER NATURAL RESOURCES COMPANY

PIONEER NATURAL RESOURCES COMPANY

January 05, 2005 09:01 ET

Pioneer Announces Canyon Express Gas System Shut In for Pipeline Repair


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PIONEER NATURAL RESOURCES COMPANY

NYSE SYMBOL: PXD

JANUARY 5, 2005 - 09:01 ET

Pioneer Announces Canyon Express Gas System Shut In
for Pipeline Repair

DALLAS--(CCNMatthews - Jan 5, 2005) -

Pioneer Natural Resources Company ("Pioneer") (NYSE:PXD) today announced
that production from the Canyon Express gas system was shut in during
early December as a result of a leak in the methanol delivery system.
Pioneer initially expected that the production impact would be minimal;
however, difficulties in locating the leak have delayed repair
operations. The methanol delivery line was located on January 1, and
while the exact cause is still under investigation, it appears to be the
result of structural damage caused by accidental impact. Pioneer
believes that the repair costs should be recoverable by insurance.

TOTAL E&P USA, INC. is the operator of the Canyon Express system, and
several options for repairing the leak are under evaluation. The
timeframe required for completing the repair will depend on the option
selected. Assuming that undue delays are not encountered in contracting
for the services required to complete the repairs, Pioneer currently
anticipates that production from Canyon Express should resume in
approximately 30 days. Initial daily production rates are expected to
vary as the methanol delivery system is cleared of water and debris
associated with the leak and the repair operations.

Pioneer's share of net gas production from Canyon Express was averaging
approximately 90 million cubic feet per day prior to being shut in. The
impact to the Company's fourth quarter average daily production is
expected to be approximately 5,000 barrels oil equivalent (BOE), leaving
total production for the quarter at the lower end of Pioneer's
forecasted production range of 190,000 to 205,000 BOE per day.

Pioneer is a large independent oil and gas exploration and production
company with operations in the United States, Argentina, Canada,
Equatorial Guinea, South Africa and Tunisia. Pioneer's headquarters are
in Dallas. 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
that 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, competition, government regulation or
action, international operations and associated international political
and economic instability, litigation, the costs and results of drilling
and operations, Pioneer's ability to replace reserves, 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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Pioneer Natural Resources Company, Dallas
    Investor Relations
    Susan Spratlen or Chris Paulsen, 972-444-9001