EXHIBIT 99.1


                                  NEWS RELEASE

                    Investor Relations Contact: Susan Spratlen   (972) 444-9001

              Pioneer Increases North American Gas Production 39%,
              Provides Update on Project Timing and Second Quarter

Dallas, Texas,  July 17,  2003 --  Pioneer Natural Resources Company ("Pioneer")
(NYSE:PXD)  today  announced that the Company set a new record for quarterly gas
production  from North America with  approximately  48 billion cubic feet of gas
produced  during the second  quarter,  a 39% increase  over the first quarter of
2003. Production from its Canyon Express and Falcon deepwater Gulf of Mexico gas
projects met expectations putting the quarter's worldwide oil and gas production
at approximately  14.5 million barrels oil equivalent.  Pioneer also provided an
update on its three other large projects under development.

First production from Sable, an oil field development offshore South Africa,  is
now expected in August.  The owner of the  floating  production  facility  being
leased by Pioneer and  partners to handle  Sable  field  production  encountered
unexpected problems with the new compression equipment installed on the facility
requiring extensive reconditioning.  Oil sales are expected by late in the third
quarter as soon as  sufficient  inventory  has been built to offload oil for the
first shuttle delivery to onshore facilities.

Development of the  Harrier field,  a Falcon  satellite in the deepwater Gulf of
Mexico,  is  progressing  on schedule for first  production in early 2004.  Well
completion  activities  are  scheduled to begin in August,  and Pioneer plans to
drill two additional  satellite  prospects,  Tomahawk and Raptor, under the same
rig contract.  The Devils Tower project,  an oil and gas development also in the
deepwater Gulf of Mexico,  is on schedule for start-up  during the first quarter
of 2004.  Both  projects  were  impacted  by recent  severe  weather  and strong
currents in the Gulf of Mexico without  requiring  meaningful  schedule changes.
However, future weather-related delays, if extensive,  may result in unavoidable
schedule changes.

As a result of this week's severe weather in the western Gulf of Mexico, Pioneer
evacuated employees from several shallow-water  platforms,  but, with production
from these fields  averaging less than 1,000 barrels oil equivalent per day, the
Company expects  minimal impact on total  production.  The deepwater  Falcon gas
field  was  shut-in  just  before   midnight  on  Monday  and   production   was
reestablished  early this  morning.  The  impact,  while not  material,  will be
included in third quarter  production  guidance expected to be issued later this
month.

Second Quarter Guidance Update

Pioneer  today  updated  its  second  quarter  2003  outlook  based  on  current
expectations  and partial quarter actual results.  The following  statements are
estimates based on current expectations.  These  forward-looking  statements are
subject  to a number of risks  and  uncertainties  that may cause the  Company's
actual  results to differ  materially  from the following  statements.  The last
paragraph of this news release  addresses certain of the risks and uncertainties
to which the Company is subject.

The Company's  second quarter  realized price for oil,  including the effects of
hedges,  is  expected  to average  approximately  $24.20 to $24.30  per  barrel.
Pioneer's  second quarter  realized price for natural gas liquids is expected to
range from $17.85 to $17.95 per barrel.  The Company's  second quarter  realized
price  for gas,  including  the  effects  of  hedges,  is  expected  to  average
approximately  $4.05 to $4.15 per  thousand  cubic feet.  Second  quarter  lease
operating expenses  (including  production and ad valorem taxes) are expected to
average  approximately  $4.75 to $4.85 per barrel oil equivalent (BOE).  General
and administrative expense is expected to be approximately $14 million. Interest
expense and accretion of discount on asset  retirement  obligations are expected
to total  approximately  $25  million.  Tax  expense  for the second  quarter is
expected to be no more than $4 million as the Company  continues to benefit from
the carryforward of prior years' net operating losses in the U.S. and Canada.





Second quarter  depreciation,  depletion and amortization  (DD&A) is expected to
average approximately $6.90 to $7.00 per BOE. DD&A is higher than anticipated as
a result of the  reclassification  of a portion  of the proved  reserves  in the
Aconcagua field from proved developed reserves to proved  undeveloped  reserves.
While  production from the Aconcagua field has met expectations and total proved
reserves  are  unchanged,  Pioneer  believes  that  recent  well  pressure  data
indicates  that a future  sidetrack will likely be required to fully produce the
proved gas  reserves.  Depletion  of  intangible  drilling and  equipment  costs
increased given that it is calculated on the unit of production  method based on
only proved developed reserves.

Second  quarter   exploration  and   abandonment   expense  is  expected  to  be
approximately  $47 million including $18 million of seismic and other geological
and  geophysical   costs  covering   prospective   areas  for  potential  future
exploration  activities.  Exploration  and  abandonment  expense  also  includes
charges related to three unsuccessful wells in South Africa and two unsuccessful
Gulf of Mexico  shelf  wells.  Pioneer  expects to discuss  the results of other
exploration  drilling,  including  preliminary  results in  Tunisia,  later this
month.

Pioneer is a large  independent oil and gas  exploration and production  company
with operations in the United States, Canada, Argentina, South Africa, Gabon and
Tunisia.  Pioneer's  headquarters  are in Dallas.  For more  information,  visit
Pioneer's website at www.pioneernrc.com.

Except for  historical  information  contained  herein,  the  statements in this
Document  are  forward-looking  statements  that are made  pursuant  to the Safe
Harbor  Provisions  of the  Private  Securities  Litigation  Reform Act of 1995.
Forward-  looking  statements  and the  business  prospects  of Pioneer  Natural
Resources  Company are subject to a number of risks and  uncertainties  that may
cause Pioneer's  actual results in future periods to differ  materially from the
forward-looking  statements.  These risks and uncertainties include, among other
things,   volatility  of  oil  and  gas  prices,   product  supply  and  demand,
competition,   government  regulation  or  action,  foreign  currency  valuation
changes,  foreign government tax and regulation changes,  litigation,  the costs
and results of drilling and operations,  Pioneer's  ability to replace reserves,
implement its business plans, or complete its development projects as scheduled,
access  to and cost of  capital,  uncertainties  about  estimates  of  reserves,
quality of  technical  data,  environmental  and weather  risks,  acts of war or
terrorism.  These  and other  risks are  described  in  Pioneer's  10-K and 10-Q
Reports and other filings with the Securities and Exchange Commission.