EXHIBIT 99.1



                                  NEWS RELEASE

                                                   Investor Relations Contacts:
                               Susan Spratlen or Chris Paulsen   (972) 444-9001


                   Pioneer Announces Canyon Express Gas System
                           Shut In for Pipeline Repair


Dallas,  Texas, January 5, 2005 -- Pioneer Natural Resources Company ("Pioneer")
(NYSE:PXD)  today  announced that  production from the Canyon Express gas system
was shut in during early December as a result of a leak in the methanol delivery
system.  Pioneer initially expected that the production impact would be minimal;
however,  difficulties in locating the leak have delayed repair operations.  The
methanol  delivery  line was  located on January 1, and while the exact cause is
still  under  investigation,  it appears to be the result of  structural  damage
caused by accidental  impact.  Pioneer  believes that the repair costs should be
recoverable by insurance.

TOTAL E&P USA, INC. is the operator of the Canyon  Express  system,  and several
options for repairing the leak are under evaluation.  The timeframe required for
completing  the repair will depend on the option  selected.  Assuming that undue
delays are not encountered in contracting for the services  required to complete
the repairs,  Pioneer currently  anticipates that production from Canyon Express
should  resume in  approximately  30 days.  Initial daily  production  rates are
expected to vary as the methanol  delivery system is cleared of water and debris
associated with the leak and the repair operations.

Pioneer's  share  of net  gas  production  from  Canyon  Express  was  averaging
approximately  90 million  cubic feet per day prior to being shut in. The impact
to the  Company's  fourth  quarter  average  daily  production is expected to be
approximately  5,000 barrels oil equivalent (BOE),  leaving total production for
the quarter at the lower end of Pioneer's forecasted production range of 190,000
to 205,000 BOE per day.

Pioneer is a large  independent oil and gas  exploration and production  company
with  operations in the United States,  Argentina,  Canada,  Equatorial  Guinea,
South  Africa  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 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,
international  operations  and associated  international  political and economic
instability,  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  described  in Pioneer's  10-K and 10-Q  Reports and other  filings with the
Securities and Exchange Commission.