EXHIBIT 99.3
NEWS RELEASE
Investor Relations Contact: Susan Spratlen (972) 444-9001
Pioneer Extends Olowi Field in Gabon and
Provides Update on Other Exploration Activity
Dallas, Texas, April 9, 2002 -- Pioneer Natural Resources Company ("Pioneer")
(NYSE:PXD) (TSE:PXD) today announced that the Awena Marin-1, the first of three
wells to be drilled this year in the shallow water offshore Gabon, successfully
extended the oil accumulation previously established by the Olowi Marin-1
discovery well drilled in 2001. The Awena Marin-1 discovery was drilled
approximately 13 kilometers (eight miles) southeast of the Olowi Marin-1
discovery to a total depth of approximately 3,600 feet and found nine feet of
net oil pay in its primary target, the Lower Gamba sand, and 41 feet of higher
quality reservoir sand in the Upper Gamba.
As expected, the reservoir thickness and quality of the Lower Gamba sands were
less than in the previous discovery, and, while the gravity was similar to the
Olowi Marin-1 (34 degree API), the well flowed oil at non-commercial rates from
this zone. However, in the Upper Gamba, the quality of the reservoir sand
significantly improved, but the sands were penetrated in the gas cap of the
field, producing approximately 12 million cubic feet of gas per day during a two
hour test.
Most significantly, the Lower Gamba oil rim was found at the same depth as in
the discovery well 13 kilometers away as predicted by Pioneer's 3-D seismic
model and could be an indicator that the oil rim is in communication between the
two discoveries. Pioneer plans to use the well data to further refine its
seismic model to target the location of the oil column within the Upper Gamba
sand and is also evaluating the potential to commercialize the significant gas
reservoir.
The Awena Marin-1 well was the first of at least three wells Pioneer plans to
drill this year to evaluate the size of the oil and gas field on its Olowi block
offshore Gabon. In May, Pioneer plans to drill two wells approximately five
kilometers north and south of the first discovery, Olowi Marin-1, to further
appraise the extent of the oil rim in that area. The Olowi Marin-1 well was
drilled in 2001 to its targeted depth of 3,720 feet and found an oil column at
least 75 feet thick in excellent quality reservoir sands (average porosity of
20% or higher) and tested at a flow rate of approximately 2,100 barrels of oil
per day.
The Olowi block is on trend with two very similar sub-salt fields onshore Gabon,
Rabi Kounga, a 700 million barrel oil field discovered by Shell in 1985 that is
about 100 kilometers north, and Gamba, a 300 million barrel oil field discovered
by Shell in 1963 that is 15 kilometers north. The Olowi feature has the largest
areal extent of the three, estimated by Pioneer to cover 27 kilometers north to
south. Rabi Kounga and Gamba cover approximately 14 and 12 kilometers,
respectively. While the Olowi feature is on trend with these fields, it is just
offshore, and Pioneer was the first company to acquire 3-D seismic over the
block. Pioneer operates the block with a 100% working interest.
"We are very encouraged by the results of the Awena Marin-1 well. By
establishing the existence of oil this far to the southeast of our 2001
discovery and with the improvement in the quality of the Upper Gamba sands, we
gained confidence that the Olowi block holds oil reserves within our original
range of 100 to 300 million barrels and now believe we could have additional
upside. We are in an excellent neighborhood with giant fields just onshore to
the north. We look forward to getting the results of the two additional wells we
plan to drill in May nearer our original discovery well, and hope to establish
sufficient reserves in this area of the field to move forward with development
as we continue to explore more remote sections of the feature," stated Scott D.
Sheffield, Chairman, President and CEO.
Pioneer also provided an update on its exploration activity to date and its
plans for the remainder of 2002. Development continues on Pioneer's "Big 4"
discoveries which are the drivers behind the Company's expected production
growth of 55% to 60% from today's rates to mid-2003. Canyon Express is
progressing toward first production late this summer, and Sable, Devils Tower
and Falcon are on track for early 2003 startup.
Pioneer is currently participating in a deepwater Gulf of Mexico well being
drilled to appraise the Ozona Deep discovery drilled in 2001. Later this year,
the Company plans to test prospects near both its Falcon and Devils Tower
discoveries to take advantage of the new infrastructure currently under
development in those areas. On the Gulf of Mexico shelf, Pioneer plans to test
the Gallop prospect, a deep gas prospect on trend with the Stirrup field
discovered in 2001 that began producing gas on April 2, 2002. One or two
additional deep gas tests on the Gulf of Mexico shelf could be drilled later in
the year.
Pioneer plans to continue to explore its extensive acreage position offshore
South Africa by drilling at least two wells to test oil and gas prospects
refined with information from new 3-D seismic data surveys, and the Company
plans to drill one to two Silurian and TAGI sand prospects in Tunisia in North
Africa.
Pioneer also issued press releases today providing an update on its first
quarter 2002 outlook, recent Argentine developments and hedging activities and
announcing acquisitions totaling $193 million in the West Panhandle gas field in
the Texas Panhandle and the Falcon field in the deepwater Gulf of Mexico, and
announcing a public offering of 10 million shares of its common stock.
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.