EXHIBIT 99.1
NEWS RELEASE
Investor Relations Contacts:
Susan Spratlen or Chris Paulsen (972) 444-9001
Pioneer Initiating Sidetrack Operations on Harrier Field,
Updating Guidance
Dallas, Texas, September 7, 2004 -- Pioneer Natural Resources Company
("Pioneer") (NYSE:PXD) announced today that it has shut in production from the
Harrier field in the Falcon Corridor of the deepwater Gulf of Mexico as a result
of early water encroachment. A sidetrack well is expected to spud in
mid-September to access an adjacent fault block in the field and could be
producing by the end of October. Proved reserves for the Falcon Corridor are not
expected to change significantly as any impact to Harrier reserves should be
offset by reserve additions related to better than expected production data for
the Falcon field.
Pioneer plans to initiate a drilling campaign in the Falcon Corridor during the
first half of 2005 that is expected to include two to three exploration wells
and another sidetrack targeting additional reserves.
Pioneer expects total company production for the third quarter to average
180,000 to 185,000 barrels oil equivalent per day, reflecting the impact of
downtime for the above mentioned Harrier operations and weather-related downtime
on the Canyon Express and Devils Tower systems stemming from personnel
evacuations for hurricanes Charlie and Earl. The new third quarter production
range does not include allowances for any additional downtime related to
weather.
In Argentina, the government continues to take steps to limit increases in
domestic gasoline prices in the face of rising oil prices, including increases
in oil export taxes. In early August, the oil export tax was increased from a
flat 25% to a range of 25% to 45% (effective rates of 20% to 31%), with the
highest rate effective for export sales occurring when West Texas Intermediate
prices reach $45 or more per barrel. While Pioneer does not currently export any
of its oil production, the Company is currently negotiating domestic sales
prices which are expected to be retroactive to August 6 and move toward parity
with export price realizations. Argentine liquids sales currently represent
approximately 15% of Pioneer's worldwide liquids production.
Pioneer is a large independent oil and gas exploration and production company
with operations in the United States, Argentina, Canada, Equatorial Guinea,
Gabon, South Africa and Tunisia. Pioneer's headquarters are in Dallas. For more
information, visit Pioneer's website at www.pioneernrc.com .
Pioneer has filed with the SEC a registration statement containing the joint
proxy statement-prospectus to be used by Pioneer to solicit approval of its
stockholders to issue additional stock in the merger and to be used by Evergreen
to solicit the approval of its stockholders for the proposed merger. Pioneer has
also filed other documents concerning the proposed merger. You are urged to read
the registration statement and the joint proxy statement-prospectus regarding
the proposed merger because they contain important information. You can obtain a
free copy of the joint proxy statement-prospectus including the registration
statement, as well as other filings containing information about Pioneer at the
SEC's Internet Site (http://www.sec.gov). Copies of the joint proxy
statement-prospectus can also be obtained without charge, by directing a request
to: Pioneer Natural Resources Company, Susan Spratlen, 5205 N. O'Connor Blvd.,
Suite 900, Irving, Texas 75039, or via telephone at 972-969-3583.
Pioneer and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from the stockholders of Pioneer in
connection with the proposed merger. Evergreen and its directors and executive
officers may be deemed to be participants in the solicitation of proxies from
the stockholders of Evergreen in connection with the proposed merger. Additional
information regarding the interests of those participants may be obtained by
reading the joint proxy statement-prospectus regarding the proposed merger.
This filing contains forward-looking statements that are made pursuant to the
Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995,
particularly those statements regarding the effects of the proposed merger and
those preceded by, followed by or that otherwise include the words "believes,"
"expects," "anticipates," "intends," "estimates," or similar expressions.
Forward-looking statements relating to expectations about future results or
events are based upon information available to Pioneer and Evergreen as of
today's date, and neither Pioneer nor Evergreen assumes any obligations to
update any of these statements. The forward-looking statements are not
guarantees of the future performance of Pioneer, Evergreen or the combined
company, and actual results may vary materially from the results and
expectations discussed. For instance, although Pioneer and Evergreen have signed
an agreement for a subsidiary of Pioneer to merge with Evergreen, there is no
assurance that they will complete the proposed merger. The merger agreement will
terminate if the companies do not receive necessary approval of the stockholders
of Pioneer and Evergreen or government approvals or fail to satisfy conditions
to closing. Additional risks and uncertainties related to the proposed merger
include, but are not limited to, conditions in the financial markets relevant to
the proposed merger, the successful integration of Evergreen into Pioneer's
business, and each company's ability to compete in the highly competitive oil
and gas exploration and production industry. The revenues, earnings and business
prospects of Pioneer and the combined company and their ability to achieve
planned business objectives will be subject to a number of risks and
uncertainties. 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, environmental and weather risks, acts of war or terrorism. These and other
risks are identified from time to time in Pioneer's SEC reports and public
announcements.