Exhibit 99.1

	Contacts:	Bill Hibbetts, Senior VP & CFO Pioneer Drilling Company 210-828-7689
FOR IMMEDIATE RELEASE		Ken Dennard / ksdennard@drg-e.com Lisa Elliott / lelliott@drg-e.com DRG&E / 713-529-6600

PIONEER DRILLING REPORTS

FISCAL 2007 RESULTS

Fourth quarter revenues were up 25% to $103.3 million

Fourth quarter earnings per diluted share was $0.34

May 17, 2007 – SAN ANTONIO, TEXAS – Pioneer Drilling Company (AMEX: PDC) today reported results for the three months ended March 31, 2007, which is the fourth quarter of its 2007 fiscal year.

Revenues for the fourth quarter of fiscal 2007 grew to $103.3 million, compared to revenues of $82.8 million for the fourth quarter of fiscal 2006. This 25% increase in revenues was generated by a 13% increase in average revenues per revenue day to $19,863 per day, in addition to a 16% increase in the average number of rigs in Pioneer Drilling’s fleet to 64.3 rigs. Average drilling margin⁽¹⁾ per revenue day of $8,253 in the fourth quarter of fiscal 2007 was relatively consistent with the $8,268 recorded in the fourth quarter of fiscal 2006. Net earnings for the fourth quarter of fiscal 2007 were $17.2 million, or $0.34 per diluted share, compared to net earnings of $18.0 million, or $0.36 per diluted share, for the fourth quarter of fiscal 2006. Pioneer Drilling began expensing stock compensation in fiscal 2007, and the stock compensation expense for the fourth quarter of fiscal 2007 was $587,000. Weighted average shares of common stock outstanding on a diluted basis increased to 50.1 million shares, from 49.1 million shares.

Revenue days during the fourth quarter of fiscal 2007 increased 11% to 5,203, compared to 4,701 revenue days for the fourth quarter of fiscal 2006. Pioneer Drilling’s rig utilization rate was 91% for the fourth quarter of fiscal 2007, down 4% from 95% in the fourth quarter of fiscal 2006.

Wm. Stacy Locke, Pioneer Drilling’s President and Chief Executive Officer, stated, “Fiscal 2007 was the most profitable year in Pioneer Drilling’s history. In addition to exceptional revenue and earnings growth, we added 10 premium new-build rigs to our fleet and have now completed our 15-rig new-build program. Pioneer has made a commitment to providing its customers safe operations and a modern and efficient fleet. In addition to new-build rigs, we made over $19 million in equipment upgrades to existing rigs, consisting primarily

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of new, efficient engines, triplex mud pumps and modern mud-cleaning systems. In March, we installed our first two iron roughnecks and anticipate installing roughly 33 more in fiscal 2008. In April, we installed our first company-owned top drive and will add two more within the next 90 days. As land rig capacity in the U.S. continues to increase, we believe that it is more important than ever to maintain a rig fleet that is modern, efficient, safe and capable of drilling horizontal and directional wells. Also, our customer base is larger and more established today than any other time in our past, with over 70% of our rigs working for large independents or majors.”

Mr. Locke further commented, “Current softness in the U.S. land-rig market will likely bottom out in the summer, and dayrates should firm up towards the end of fiscal 2008. Natural gas prices are far better than most people anticipated and will probably be strong enough later in the fiscal year and next year to generate rig demand sufficient to overcome the steadily increasing supply of land rigs in the U.S. market. Excluding our five low horsepower rigs in Oklahoma, forward dayrates range from $15,500 to $22,000, depending on rig class and horsepower, and excluding top drives and fuel.”

He also stated, “In the Company’s fourth quarter of fiscal 2007, average margins per day and rig utilization declined more than we anticipated. Daywork drilling margins per revenue day declined 14%, to $8,564, as compared to $9,993 in the third quarter. In the fourth quarter, average daywork revenues declined $749 per day while average daywork costs increased $679 per day. The increased daily daywork costs were primarily the result of increased labor and supply, repair and maintenance costs associated with stacking out drilling rigs. Rig utilization declined to 91% in the fourth quarter, as compared to 98% in the third quarter.”

Mr. Locke added, “We expect that our rig utilization will decline very little from this level over the next two or three quarters and begin to increase at the end of fiscal 2008. Also impacting drilling margins per day and earnings was the lack of profitability in our Oklahoma Division. The shallow rig market of western Oklahoma continued to weaken during the fourth quarter as a result of rigs stacking out and footage and dayrates precipitously declining. However, through cost containment and an improving market, the division should begin to show improvement in the current quarter.”

Currently, 30 of the Company’s 66 rigs, or 45%, are operating under term contracts of six months to two years. Four of the term contracts will expire in the current quarter and an additional eight will expire during the second quarter of fiscal 2008. Term contracts cover approximately 4,893 revenue days, or 32%, of the remainder of calendar 2007 and 2,874, or 12%, of calendar 2008.

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Revenues for the 12 months of fiscal 2007 increased 46% to $416.2 million, compared to revenues of $284.1 million for fiscal 2006, while net earnings grew 66% during fiscal 2007 to $84.2 million, or $1.68 per diluted share, compared to net earnings of $50.6 million, or $1.06 per diluted share, during fiscal 2006.

Revenue days were 20,930 during the 12 months of fiscal 2007, compared to 18,164 revenue days for fiscal 2006. Pioneer Drilling’s rig utilization rate for both fiscal years was 95%.

Pioneer Drilling’s management team will hold a conference call today, Thursday, May 17, at 11:00 a.m. Eastern time (10:00 a.m. Central), to discuss these results. To participate in the call, dial (303) 262-2139 at least 10 minutes before the conference call begins and ask for the Pioneer Drilling conference call. A replay of the call will be available approximately two hours after the call ends and will be accessible until May 24, 2007. To access the replay, dial (303) 590-3000 and enter the pass code 11089300#.

Investors, analysts and the general public can listen to the conference call over the Internet by accessing Pioneer Drilling’s Web site at http://www.pioneerdrlg.com. To listen to the live call on the Web, please visit Pioneer Drilling’s Web site at least 10 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live Webcast, an archive will be available shortly after the call. For more information, please contact Donna Washburn at DRG^&E at (713) 529-6600 or e-mail dmw@drg-e.com.

Pioneer Drilling provides land contract drilling services to independent and major oil and gas operators drilling wells in Texas, Louisiana, Oklahoma, Kansas and in the Rocky Mountain region. Its fleet consists of 66 land drilling rigs that drill in depth ranges between 6,000 and 18,000 feet.

(1) Drilling margin represents contract drilling revenues less contract drilling costs. Pioneer Drilling believes that drilling margin is a useful measure for evaluating its financial performance, although it is not a measure of financial performance under generally accepted accounting principles. However, drilling margin is a common measure of operating performance used by investors, financial analysts, rating agencies and Pioneer Drilling’s management. A reconciliation of drilling margin to net earnings is included in the operating statistics table below in this release. Drilling margin as presented may not be comparable to other similarly titled measures reported by other companies.

This press release contains various forward-looking statements and information that are based on management’s belief, as well as assumptions made by and information currently available to management. Forward-looking information includes statements regarding the anticipated timing and installation of iron roughnecks and topdrives, future natural gas price trends, future dayrates, future demand and market competitiveness of Pioneer Drilling’s rig fleet, including our ability to continue to obtain term contracts, the future employment of Pioneer Drilling’s rig fleet, overall market demand and utilization rates for rigs. Although the management of Pioneer Drilling believes that the expectations reflected in such forward-looking statements are reasonable, Pioneer Drilling can give no assurance that those expectations will prove to have been correct.

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Such statements are subject to various risks, uncertainties and assumptions. Should one or more of those risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. These risks are discussed in greater detail in Pioneer’s filings with the Securities and Exchange Commission (the “SEC”), including the Company’s annual report on Form 10-K for the fiscal year ended March 31, 2006 and subsequent filings with the SEC.

The forecasted capital expenditures set forth below contain assumptions management believes are reasonable, based on information available as of the date of this news release. Pioneer Drilling is not undertaking any obligation to update this forecasted information as conditions change or as additional information becomes available. There can be no assurance that any of the forecast estimates can or will be achieved.

- Tables to Follow -

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PIONEER DRILLING COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

	Three Months Ended (unaudited)									Years Ended March 31,
	March 31,						Dec. 31, 2006
	2007			2006						2007			2006
Revenues:
Contract drilling	$	103,347		$	82,840		$	112,421		$	416,178		$	284,148
Costs and Expenses:
Contract drilling		60,406			43,972			58,659			224,423			166,211
Depreciation		14,736			9,519			13,969			52,856			33,387
General and administrative		2,607			1,953			2,743			11,123			6,793
Bad debt expense (recovery)		—			(177	)		800			800			(152	)
Total operating costs		77,749			55,267			76,171			289,202			206,239
Operating income		25,598			27,573			36,250			126,976			77,909
Other income (expense):
Interest expense		—			(32	)		(9	)		(73	)		(236	)
Interest income		881			720			836			3,828			2,069
Other		8			32			13			57			71
Total other		889			720			840			3,812			1,904
Income before income taxes		26,487			28,293			37,090			130,788			79,813
Income tax expense		(9,269	)		(10,325	)		(13,102	)		(46,609	)		(29,246	)
Net earnings	$	17,218		$	17,968		$	23,988		$	84,179		$	50,567
Earnings per share:
Basic	$	0.35		$	0.37		$	0.48		$	1.70		$	1.08
Diluted	$	0.34		$	0.36		$	0.48		$	1.68		$	1.06
Weighted average number of shares outstanding:
Basic		49,619			48,337			49,603			49,603			46,808
Diluted		50,127			49,105			50,146			50,132			47,506

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PIONEER DRILLING COMPANY AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands)

	March 31, 2007		March 31, 2006
Assets
Current assets:
Cash and cash equivalents	$	84,945	$	91,174
Receivables, net		57,698		35,544
Contract drilling in progress		9,837		9,620
Deferred income taxes		2,175		990
Prepaid expenses		3,653		2,208
Total current assets		158,308		139,536
Net property and equipment		342,901		260,784
Other assets		286		358
Total assets	$	501,495	$	400,678
Liabilities and Equity
Current liabilities:
Accounts payable	$	18,626	$	16,041
Federal income taxes payable		—		6,835
Prepaid drilling contracts		—		140
Accrued expenses		15,593		9,616
Total current liabilities		34,219		32,632
Other non-current liability		346		388
Deferred taxes		38,821		26,982
Total liabilities		73,386		60,002
Total shareholders’ equity		428,109		340,676
Total liabilities and shareholders’ equity	$	501,495	$	400,678

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PIONEER DRILLING COMPANY AND SUBSIDIARIES

Operating Statistics

(in thousands)

(unaudited)

	Three Months Ended									Years Ended March 31,
	March 31,						Dec. 31 2006
	2007			2006						2007			2006
Revenues by contract:
Daywork contracts	$	96,915		$	79,097		$	108,808		$	399,188		$	252,103
Turnkey contracts		3,445			—			—			3,445			10,830
Footage contracts		2,987			3,743			3,613			13,545			21,215
Total	$	103,347		$	82,840		$	112,421		$	416,178		$	284,148
Drilling costs by contract:
Daywork contracts	$	54,856		$	41,711		$	55,726		$	211,334		$	143,129
Turnkey contracts		2,615			—			—			2,615			7,449
Footage contracts		2,935			2,261			2,933			10,474			15,633
Total	$	60,406		$	43,972		$	58,659		$	224,423		$	166,211
Drilling margin by contract (1) (2):
Daywork contracts	$	42,059		$	37,386		$	53,082		$	187,854		$	108,974
Turnkey contracts		830			—			—			830			3,381
Footage contracts		52			1,482			680			3,071			5,582
Total	$	42,941		$	38,868		$	53,762		$	191,755		$	117,937
(1) Reconciliation of drilling margin to net earnings:
Drilling margin	$	42,941		$	38,868		$	53,762		$	191,755		$	117,937
Depreciation		(14,736	)		(9,519	)		(13,969	)		(52,856	)		(33,387	)
General and administrative		(2,607	)		(1,953	)		(2,743	)		(11,123	)		(6,793	)
Bad debt expense		—			177			(800	)		(800	)		152
Other income (expense)		889			720			840			3,812			1,904
Income tax expense		(9,269	)		(10,325	)		(13,102	)		(46,609	)		(29,246	)
Net earnings	$	17,218		$	17,968		$	23,988		$	84,179		$	50,567
(2) Drilling margins represent drilling revenues less contract drilling costs.

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PIONEER DRILLING COMPANY AND SUBSIDIARIES

Operating Statistics

(unaudited)

	Three Months Ended									Years Ended March 31,
	March 31,						Dec. 31 2006
	2007			2006						2007			2006
Average number of rigs		64.3			55.3			62.3			60.8			52.3
Utilization rate		91	%		95	%		98	%		95	%		95	%
Revenue days by contract:
Daywork contracts		4,911			4,503			5,312			19,995			16,138
Turnkey contracts		81			—			—			81			558
Footage contracts		211			198			260			854			1,468
Total		5,203			4,701			5,572			20,930			18,164
Average revenues per day:
Daywork contracts	$	19,734		$	17,565		$	20,483		$	19,964		$	15,622
Turnkey contracts	$	42,531		$	—		$	—		$	42,531		$	19,409
Footage contracts	$	14,156		$	18,904		$	13,896		$	15,861		$	14,452
All contracts	$	19,863		$	17,622		$	20,176		$	19,884		$	15,643
Average costs per day:
Daywork contracts	$	11,170		$	9,263		$	10,491		$	10,569		$	8,869
Turnkey contracts	$	32,284		$	—		$	—		$	32,284		$	13,349
Footage contracts	$	13,910		$	11,419		$	11,281		$	12,265		$	10,649
All contracts	$	11,610		$	9,354		$	10,527		$	10,723		$	9,151
Drilling margin per day (3):
Daywork contracts	$	8,564		$	8,302		$	9,993		$	9,395		$	6,753
Turnkey contracts	$	10,247		$	—		$	—		$	10,247		$	6,059
Footage contracts	$	246		$	7,485		$	2,615		$	3,596		$	3,802
All contracts	$	8,253		$	8,268		$	9,649		$	9,161		$	6,492

(3) Drilling margin per revenue day represents average revenue per revenue day less average cost per revenue day.

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PIONEER DRILLING COMPANY AND SUBSIDIARIES

Capital Expenditures

(in thousands)

	Three Months Ended										Budget Year Ending March 31, 2008
	March 31,				Dec. 31, 2006		Years Ended March 31,
	2007		2006				2007		2006
Capital expenditures:
Routine rig	$	4,724	$	3,895	$	6,523	$	17,832	$	12,898	$	18,739
Average per revenue day	$	908	$	833	$	1,171	$	852	$	710
Discretionary:
Rig upgrades	$	3,183	$	5,096	$	518	$	19,917	$	21,446	$	15,400
Iron roughnecks and topdrives		3,602		—		—		3,602		—		18,250
Spare equipment		1,736		387		1,185		8,457		11,037		3,500
Other		3,706		803		3,266		9,022		5,157		5,400
Total discretionary	$	12,227	$	6,286	$	4,969	$	40,999	$	37,640	$	42,550
Tubulars	$	3,589	$	308	$	46	$	13,942	$	6,151	$	16,450
Total routine, discretionary and tubulars	$	20,540	$	10,489	$	11,538	$	72,773	$	56,689	$	77,739
New-builds and acquisitions		9,487		26,739		19,981		74,457		72,182		—
Total capital expenditures	$	30,027	$	37,228	$	31,519	$	147,229	$	128,871	$	77,739

PIONEER DRILLING COMPANY AND SUBSIDIARIES

Rig Information

	Rig Type
	Mechanical	Electric	Total Rigs
Rig horsepower ratings:
550 to 700 HP	6	—	6
750 to 900 HP	15	2	17
1000 HP	17	12	29
1200 to 1500 HP	3	11	14
Total	41	25	66
Rig drilling depth ratings:
Less than 10,000 feet	8	2	10
10,000 to 13,900 feet	30	7	37
14,000 to 18,000 feet	3	16	19
Total	41	25	66

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