Pioneer and Woodside agree to jointly explore on Gulf of Mexico shelf

Pioneer Natural Resources Co. and Woodside Energy have agreed to a joint exploration program for a two-year campaign over the shallow-water Texas shelf region of the Gulf of Mexico.

Pioneer Natural Resources Co. and Woodside Energy have agreed to a joint exploration program for a two-year campaign over the shallow-water Texas shelf region of the Gulf of Mexico.

Under the agreement, Woodside has taken a 50% interest in 47 offshore Pioneer-operated exploration blocks. The agreement covers eight prospects and 19 leads and includes five wells in 2003 and three in 2004. The agreement will cost Woodside $55 million. Most of the wells will target gas plays below 15,000 ft.

The eight wells to be drilled by the parties in 2003 and 2004 are on prospects generated and leased by Pioneer since 1997. In addition, the companies will evaluate for potential inclusion in the drilling program shallower gas prospects on other blocks covered by the leases.

"The Gulf of Mexico is one of Woodside's four focus areas in our search for international exploration and production opportunities to complement our Australian interests," said Dr. Kantsler, Woodside's director of new ventures. "Through this transaction, we continue our staged approach to building a balanced portfolio of shallow and deepwater opportunities in the Gulf of Mexico to manage risk and reward."

01/27/03

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