SUBJECT: PIONEER SELLS CENTRAL UTAH PLAY; YANKEE RESULTS
DATE: January 28, 2005
South Jordan, Utah --- Pioneer Oil and Gas (OTC Bulletin Board: PIOL) announced today that it had entered into an agreement with a large independent oil company on the NYSE to sell approximately 91,000 gross acres (34,000 net acres) in the Central Utah Overthrust. The terms call for the immediate purchase of 56,000 gross acres (of the 91,000) with the option to purchase 35,000 more. Additional terms of the agreement including the purchase price are confidential.
One of Pioneer's employees, Michael Pinnell, Exploration Manager, was also the co-author of a seminal article in the Oil and Gas Journal, "Stunning Utah Oil, Gas Discovery Focuses Spotlight on Hingeline", in the January 17, 2005 issue. This article details the exciting developments in the Central Utah Overthrust play.
In another development Pioneer announced that it had completed the Yankee Mine West No. 1 well as a dry hole. This well has helped with defining of the Yankee structure but more follow-up data including seismic is probably needed before drilling another well.
Further information on Pioneer can be viewed at our web site at www.piol.com.
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