Pioneer produces from GoM deepwater discovery

Offshore staff

Pioneer has initiated production from a new gas well at its Raptor field in the Falcon Corridor, which is in the East Breaks area of the Gulf of Mexico. The well tested at 30 MMcf/d, but system pressure will limit incremental production impact.

The company holds a 100% working interest and operates the three fields that are tied into the Falcon facilities. The company expects Raptor to extend the life of the Falcon Corridor system and generate more than 100% return on investment.

Pioneer will drill and operate two additional wells in the deepwater GoM this year. Pioneer is drilling the Clipper prospect, an amplitude play in the Green Canyon area. Pioneer has a 55% in Clipper.

The company expects the Paladin prospect to spud in 3Q 2005. It is a subsalt well in the Garden Banks area. Pioneer expects to own about 40% in the project. The company will drill three or four wells on the GoM shelf before year-end.

"Pioneer has enjoyed significant exploration success in the GoM, which has resulted in several large scale development projects including Canyon Express, Devils Tower, and the Falcon Corridor. The GoM, where we have a number of attractive deepwater opportunities, will continue to be one of our key exploration focus areas," says Scott D. Sheffield, chairman and CEO, Pioneer.

06/10/05