The Handy Gas Unit #1 well, located in Karnes County, Texas, tested at an initial production rate of 19.9 million cubic feet of gas equivalent per day (including 7.7 million cubic feet of gas per day and 2,030 barrels of condensate per day) on a 22/64 inch choke with approximately 6,300 pounds per square inch wellhead flowing pressure.

This equates to a condensate yield of 263 barrels per million cubic feet of gas. The liquids-rich gas contains 1,300 British thermal units per cubic foot. The well was drilled to a vertical depth of approximately 13,100ft and completed in a 4,400ft lateral section with a 12-stage fracture stimulation. The well is expected to be connected to a sales line by early May.

Scott Sheffield, chairman and CEO, said: “We are very excited to have successfully drilled another highly productive well in the Eagle Ford Shale, especially one with the highest condensate production rate and yield per million cubic feet of gas as well as the highest combined gas and liquids production rate reported in the play to date.”

Pioneer is targeting liquids-rich areas with two rigs currently drilling horizontal wells in Karnes and Live Oak Counties, and it plans to ramp up drilling activity within the next few months.

To further accelerate Eagle Ford Shale development, the company is actively pursuing a joint venture, with closing expected by the end of the second quarter of 2010.