SUBJECT: PIONEER CLOSES ON FIRST PHASE OF CENTRAL UTAH PLAY; SELLS REMAINING OVERPRESSURED GAS PLAY
DATE: February 22, 2005
South Jordan, Utah --- Pioneer Oil and Gas (OTC Bulletin Board: PIOL) announced today it had closed on the first phase of its central Utah project selling approximately 21,232 gross acres (7,962 net acres) in the Central Utah Overthrust for $2,189,550. Pioneer will retain a 1.75 percent overriding royalty interest in the 21,232 gross acres.
Pioneer also announced that it had closed on the remaining portion of its Uinta Basin Overpressured Gas Prospect comprising 13,189 net acres. Pioneer received $454,709 and will retain a 3.25 percent overriding royalty interest in this project as well as a 10 percent carried working interest (eight percent net revenue interest) on the first two wells drilled on the property. After the first two wells Pioneer can participate or farmout for its 10 percent working interest.
Statements concerning future financial results, production, expenditures, reserve estimates, and other items are forward-looking statements. These statements are based on assumptions concerning commodity prices, drilling results and other factors management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are both subject to a wide range of business risks, and there is no assurance that these goals and projections can or will be met.
Further information on Pioneer can be
viewed at its web site at www.piol.com.
For more information drop us an E-Mail or contact Don J. Colton at (801) 566-3000