Pioneer Natural Resources Company says that the Company added proved reserves totaling 110 million barrels oil equivalent (MMBOE) during 2008 from discoveries, extensions, technical revisions and acquisitions. These additions equate to 246% of full-year 2008 production. Approximately 87% of the additions (96 MMBOE) resulted from drilling success and performance improvements in Pioneer’s core U.S. areas (Spraberry, Raton, Edwards Trend, Mid-Continent, Barnett Shale and Alaska). The remaining 13% (14 MMBOE) was attributable to bolt-on acquisitions in the Spraberry, Edwards Trend and Barnett Shale areas.

The drillbit finding and development (F&D) cost for the proved reserve additions from drilling success and performance improvements (discoveries, extensions and technical revisions) was $13.82 per barrel oil equivalent (BOE). This result reflected a 39% improvement compared to 2007 and beat Pioneer’s targeted drillbit F&D cost for 2008 of $15 to $20 per BOE.

Scott D. Sheffield, Pioneer’s Chairman and CEO, stated, “We delivered another strong year of proved reserve replacement with the drillbit and again reduced our organic F&D cost, despite the upward pressure on drilling and development costs that we experienced for most of the year. This performance demonstrates the quality of our core assets and the potential for continuing growth in the future.”

Sheffield continued, “In the U.S., reserve additions were attributable to our Wolfberry play, our ongoing 40-acre drilling program and the implementation of our 20-acre downspacing initiative in the Spraberry field. We also benefited from additional discoveries in the Edwards Trend and expansion efforts in the Pierre Shale and Barnett Shale. In Alaska, results from our Oooguruk drilling are better than anticipated. Results in Tunisia were below expectations due to a combination of factors, including several wells awaiting testing, gas discoveries which cannot be booked at this time and two unsuccessful wells. Over the past three years, we have added significant reserves in Tunisia at an attractive F&D cost of approximately $9 per barrel and are optimistic about future growth opportunities.”

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