Offshore staff

DALLAS, Texas -- Pioneer Natural Resources Co. has started production from the South Coast Gas (SCG) project in block 9, offshore South Africa.

Gas and condensate production from five wells is expected to reach approximately 50 MMcf/d by the end of 2007. Within 12-18 months, production from the project is expected to rise significantly as oil production operations are completed at the Sable field and Sable gas production is tied into the project.

High oil prices have extended the production life of Sable field, and gas will continue to be re-injected into the field to enhance oil recovery. Gas development drilling in the Sable field is complete. When Sable gas is tied in to SCG in late 2008 or early 2009, the project is expected to reach peak production of 100-120 MMcf/d. Gas condensate is expected to represent 20-30% of total SCG production.

"The South Coast Gas project is an important component of our 12%+ production per share annual growth target over the 2007 through 2010 period, and we're very pleased that the development phase of the project has been completed in the time expected," says Scott Sheffield, Pioneer chairman and CEO

PetroSA, the South African national oil company, operates the project with 55% working interest. Pioneer holds 45% interest in the project. Pioneer's production from the project is sold to PetroSA under a gas and condensate sales agreement and will provide feedstock for PetroSA's onshore gas-to-liquids plant in Mossel Bay.

10/4/2007