EXHIBIT 99.1

                                  NEWS RELEASE

                                                               Company Contacts:
                                       Investors: Frank Hopkins or Chris Paulsen
                                      Media and Public Affairs:   Susan Spratlen
                                                                  (972) 444-9001

             Pioneer Agrees to Sell Interest in Offshore Gabon Block

Dallas,  Texas, June 16, 2005 -- Pioneer Natural  Resources  Company  (NYSE:PXD)
today  announced  that is has  agreed to sell its  interest  in the Olowi  block
offshore   Gabon  to  an   undisclosed   party  for  expected  net  proceeds  of
approximately $49 million.  Pioneer retained the potential to receive additional
payments for oil produced  from any deeper  reservoirs  discovered on the block.
The  transaction  is  expected  to close by the end of the third  quarter and is
subject  to  receiving  government  agreement  as to certain  provisions  of the
production sharing contract covering the block.

As a result of this agreement,  Pioneer will reverse its previously recorded tax
benefit of $27 million  associated  with the  decision to exit Gabon made during
the fourth  quarter of 2004.  The  reversal  will be recorded  as  deferred  tax
expense during the second quarter of 2005. The gain on sale of approximately $49
million will be recorded  upon  closing,  expected  during the third  quarter of
2005.

"Since we made the decision last fall not to develop the Olowi field, oil prices
covering the potential production period for the field have risen significantly.
As a result,  we reevaluated the Olowi project and  reconsidered our options for
capturing  its  potential  value.  We sought and  received  bids from  potential
partners  interested in jointly developing the field and from parties interested
in an outright purchase of our entire interest.  Ultimately,  we determined that
the best  option was to sell our  interest  and  realize  the value of the Olowi
field  while  keeping  our  resources  directed  toward our other  higher-impact
projects," stated Scott D. Sheffield, Pioneer's Chairman and CEO.

Pioneer is a large  independent oil and gas  exploration and production  company
with  operations in the United States,  Argentina,  Canada,  Equatorial  Guinea,
Nigeria,  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.