Press release from Business Wire
Pioneer Natural Resources Announces Initial Production Results for First Horizontal Wolfcamp Shale Well in Martin County, Texas
Tuesday, May 21, 2013
Pioneer Natural Resources Announces Initial Production Results for First Horizontal Wolfcamp Shale Well in Martin County, Texas16:15 EDT Tuesday, May 21, 2013
DALLAS (Business Wire) -- Pioneer Natural Resources Company (NYSE:PXD) (“Pioneer” or “the Company”) today announced that it has placed on production the Company's first horizontal Wolfcamp Shale well in Martin County, Texas. The Mabee K #1H well had an initial 24-hour peak natural flow rate of 1,572 barrels oil equivalent per day (BOEPD) with 77% oil content. The well was completed in the Wolfcamp B interval utilizing a 27-stage hybrid fracture stimulation over the well's perforated lateral length of 6,671 feet.
The initial 24-hour peak natural flow rate for the Mabee K #1H well compares very favorably with the initial 24-hour peak natural flow rate for the DL Hutt C #1H well, Pioneer's first horizontal Wolfcamp Shale B interval well in Midland County, Texas. The DL Hutt C #1H well had an initial 24-hour peak natural flow rate of 1,693 BOEPD with 75% oil content. This well utilized a 30-stage hybrid fracture stimulation over the well's longer perforated lateral length of 7,380 feet. When normalizing the lateral length of the Mabee K #1H well to the longer lateral length of the DL Hutt C #1H well, the comparable 24-hour peak natural flow rate for the Mabee K #1H well would have been higher than the DL Hutt C #1H well at 1,739 BOEPD. The Mabee K #1H well is located approximately 30 miles north of the DL Hutt C #1H well and 50 miles north of Pioneer's first two horizontal Wolfcamp Shale B interval wells in the Giddings area in Upton County.
Scott Sheffield, Chairman and CEO, stated, “The strong initial production rate from the Mabee K #1H well further demonstrates the prospectivity of Pioneer's gross 900,000-acre Spraberry/Wolfcamp leasehold position, which holds an estimated net resource potential for the Company of more than 4.6 billion barrels oil equivalent. We have seven horizontal rigs running in the southern part of the play, where the Company has its joint interest agreement with Sinochem, and we are increasing our horizontal rig count in the northern part of the play from one rig to five rigs during the second quarter. Additional rigs are expected to be added in both the southern and northern parts of the play next year. This significant ramp up in drilling activity will allow us to continue to add substantial net asset value as we further delineate multiple prospective horizontal targets across our large acreage position, including the Wolfcamp, Jo Mill and Spraberry shale intervals.”
Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States. For more information, visit Pioneer's website at www.pxd.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 commodity prices, product supply and demand, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, the receipt of approvals required to consummate the Company's Southern Wolfcamp joint venture transaction, litigation, the costs and results of drilling and operations, availability of equipment, services, resources and personnel required to complete the Company's operating activities, access to and availability of transportation, processing, fractionation and refining facilities, Pioneer's ability to replace reserves, implement its business plans or complete its development activities as scheduled, access to and cost of capital, the financial strength of counterparties to Pioneer's credit facility and derivative contracts and the purchasers of Pioneer's oil, NGL and gas production, uncertainties about estimates of reserves and resource potential and the ability to add proved reserves in the future, the assumptions underlying production forecasts, quality of technical data, environmental and weather risks, including the possible impacts of climate change, the risks associated with the ownership and operation of an industrial sand mining business and 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 U.S. Securities and Exchange Commission (SEC). In addition, Pioneer may be subject to currently unforeseen risks that may have a materially adverse impact on it. Pioneer undertakes no duty to publicly update these statements except as required by law.
Cautionary Note to U.S. Investors --The SEC prohibits oil and gas companies, in their filings with the SEC, from disclosing estimates of oil or gas resources other than “reserves,” as that term is defined by the SEC. In this news release, Pioneer includes estimates of quantities of oil and gas using certain terms, such as “resource potential,” “estimated ultimate recovery,” “EUR” or other descriptions of volumes of reserves, which terms include quantities of oil and gas that may not meet the SEC's definitions of proved, probable and possible reserves, and which the SEC's guidelines strictly prohibit Pioneer from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being recovered by Pioneer. U.S. investors are urged to consider closely the disclosures in the Company's periodic filings with the SEC. Such filings are available from the Company at 5205 N. O'Connor Blvd., Suite 200, Irving, Texas 75039, Attention: Investor Relations, and the Company's website at www.pxd.com . These filings also can be obtained from the SEC by calling 1-800-SEC-0330.
Pioneer Natural Resources Contacts:
Frank Hopkins, 972-969-4065
Josh Jones, 972-969-5822
Mike Bandy, 972-969-4513
Media and Public Affairs
Susan Spratlen, 972-969-4018
Suzanne Hicks, 972-969-4020