EXHIBIT 99.2
NEWS RELEASE
Investor Relations Contact: Susan Spratlen (972) 444-9001
Pioneer Replaces 208% of Production in 2001
Dallas, Texas, February 5, 2002 -- Pioneer Natural Resources Company ("Pioneer")
(NYSE:PXD) (TSE:PXD) announced that as of December 31, 2001, its total proved
oil and gas reserves were 671 million barrels oil equivalent (MMBOE), or 4
trillion cubic feet (Tcf) natural gas equivalent, including 325 million barrels
(MMBbls) of crude oil and natural gas liquids and 2 Tcf of natural gas.
Pioneer replaced 208% of production at a finding cost of $7.49 per BOE during
2001. Excluding 25 MMBOE of downward revisions due to the decline in commodity
prices, Pioneer replaced 268% of its production at a finding cost of $5.81 per
BOE during 2001. Costs incurred during 2001 totaled $647 million, including $171
million for acquisitions and $476 million for development and exploration
activities. Reserves as stated above were based on year-end NYMEX prices for oil
and natural gas of $19.76 per barrel and $2.73 per Mcf, respectively. Year-end
proved reserves and costs incurred are detailed in the attached supplemental
schedule. Proved developed reserves account for approximately 70% of total
proved reserves.
During 2001, Pioneer drilled 390 wells with 85% success worldwide, including 101
exploration and extension wells with 60% success. The Company drilled 271 wells
in the U.S., 51 wells in Canada, 62 wells in Argentina, four wells in South
Africa and one each in Gabon and Tunisia. Domestic drilling included 179
Spraberry oil wells, 41 wells in the Hugoton/West Panhandle gas field and 51
wells in other domestic fields.
For the three years ending in 2001, Pioneer's finding cost averaged $4.74 per
BOE. Over the three-year period, Pioneer added 250 MMBOE for total costs
incurred of $1.2 billion. Three-year average reserve replacement was 184%.
Over the past three years, Pioneer has added proved reserves related to its
interest in its "Big 4" discoveries, Canyon Express, Devils Tower and Falcon in
the deepwater Gulf of Mexico and Sable in the shallow waters offshore South
Africa. The Company believes these projects hold potential for further reserve
additions over time.
Pioneer also participated in discoveries for which no reserves have been
recorded. During 2001, Pioneer made discoveries on its first well in the Olowi
Block offshore Gabon and on Ozona Deep in the deepwater Gulf of Mexico and
confirmed the presence of significant natural gas offshore South Africa. Pioneer
plans to appraise these discoveries during 2002.
On the 2002 exploration front, Pioneer also plans to drill a second prospect
offshore Gabon to test the oil rim on the southern section of the feature.
Pioneer plans to continue exploration by drilling two wells in South Africa and
two to three wells in Tunisia in North Africa. On the Gulf of Mexico shelf, the
Company plans to drill the Gallup prospect which is similar to the Stirrup field
where the Company drilled a discovery during 2001. In the deepwater Gulf of
Mexico, Pioneer plans to test prospects near both Falcon and Devils Tower to
take advantage of the new infrastructure currently under development in these
areas.
Scott D. Sheffield, Chairman and CEO, stated, "Pioneer's exploration strategy,
supported by incremental acquisitions in key areas, has added significant proved
reserves and the potential for 55% to 60% production growth over the next 14
months. Pioneer also has several projects in the pipeline, in both the appraisal
and prospect stages, which offer the potential to extend our production growth
into 2004 and beyond. In 1997, we made a commitment to transform Pioneer into a
successful exploration company and are very proud of our track record to date."
Pioneer is a large independent oil and gas exploration and production company
with operations in the United States, Canada, Argentina, South Africa, Gabon 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 Natural Resources
Company 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, foreign currency valuation
changes, foreign government tax and regulation changes, 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, and environmental risks. These and other risks are
described in Pioneer's 10-K and 10-Q Reports and other filings with the
Securities and Exchange Commission.
PIONEER NATURAL RESOURCES COMPANY
SUPPLEMENTAL INFORMATION
Year Ended December 31, 2001
South Africa
United & Other
States Argentina Canada Foreign Total
--------- --------- ------- ----------- ---------
Proved reserves:
Oil (MBbls):
Balance, January 1, 2001 138,350 27,806 1,429 5,552 173,137
Revisions of previous estimates:
Related to price changes (11,265) - (59) - (11,324)
Other 20,206 (5,385) (38) - 14,783
Purchases of minerals-in-place 17,063 170 - 2,133 19,366
New discoveries and extensions 4,442 4,354 - - 8,796
Production (8,629) (3,566) (303) - (12,498)
Sales of minerals-in-place - - (923) - (923)
--------- -------- ------- -------- ---------
Balance, December 31, 2001 160,167 23,379 106 7,685 191,337
Natural Gas Liquids (MBbls):
Balance, January 1, 2001 128,452 8,037 2,637 - 139,126
Revisions of previous estimates:
Related to price changes (6,757) - 58 - (6,699)
Other (3,363) 4,453 251 - 1,341
Purchases of minerals-in-place 7,880 - - - 7,880
New discoveries and extensions - - 81 - 81
Production (7,233) (200) (368) - (7,801)
Sales of minerals-in-place - - (106) - (106)
--------- -------- ------- -------- ---------
Balance, December 31, 2001 118,979 12,290 2,553 - 133,822
Natural Gas (MMcf):
Balance, January 1, 2001 1,354,327 408,282 132,919 - 1,895,528
Revisions of previous estimates:
Related to price changes (50,385) - 8,701 - (41,684)
Other 91,424 4,460 6,366 - 102,250
Purchases of minerals-in-place 63,113 31,700 - - 94,813
New discoveries and extensions 93,220 58,538 5,644 - 157,402
Production (77,609) (31,830) (18,426) - (127,865)
Sales of minerals-in-place - - (3,143) - (3,143)
--------- -------- ------- -------- ---------
Balance, December 31, 2001 1,474,090 471,150 132,061 - 2,077,301
Equivalent Barrels (MBOE):
Balance, January 1, 2001 492,523 103,890 26,219 5,552 628,184
Revisions of previous estimates:
Related to price changes (26,419) - 1,449 - (24,970)
Other 32,080 (189) 1,274 - 33,165
Purchases of minerals-in-place 35,462 5,453 - 2,133 43,048
New discoveries and extensions 19,979 14,110 1,022 - 35,111
Production (28,796) (9,071) (3,742) - (41,609)
Sales of minerals-in-place - - (1,553) - (1,553)
--------- -------- ------- -------- ---------
Balance, December 31, 2001 524,829 114,193 24,669 7,685 671,376
========= ======== ======= ======== =========
Costs incurred for oil and gas producing activities ($000):
Property acquisition costs:
Proved $ 132,793 $ 13,182 $ 29 $ 706 $ 146,710
Unproved 19,572 2,465 97 1,960 24,094
--------- -------- ------- -------- ---------
152,365 15,647 126 2,666 170,804
Exploration costs 129,639 36,237 12,707 41,446 220,029
Development costs 172,225 46,427 23,215 13,860 255,727
--------- -------- ------- -------- ---------
$ 454,229 $ 98,311 $36,048 $ 57,972 $ 646,560
========= ======== ======= ======== =========
Reserve replacement percentage 212% 214% 100% n/a 208%
========= ======== ======= ======== =========
Finding costs per BOE of proved
reserves added $ 7.43 $ 5.07 $ 9.61 $ 27.17 $ 7.49
========= ======== ======= ======== =========