South Texas
Pioneer continues to expand its gas resource play along the Edwards Reef trend in South Texas with outstanding success. Since discovery of the Pawnee field in 1961, the Company has been the most active driller along the trend and has established a large and growing acreage position to support its expansion efforts.
Increased drilling activity beginning in 2006 resulted in production growth approaching 40% for 2007 versus 2006. Further growth of more than 55% was achieved during the first half of 2008, compared to the same period in 2007. Pioneer continues to add new treating capacity to handle the increasing gas production and has completed an extension of its existing gathering pipeline. 
The Company is also completing a multi-year seismic shoot covering more than 900 square miles.
New well stimulation techniques have also shown promise in enhancing production from new and existing wells. This emerging growth asset is expected to deliver significant additions to production and reserves over the next few years.
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