The oil sold
through the VPP is for a 5-year term beginning January 1, 2006, while
the gas sold is for a 32-month term beginning May 1, 2005. Graeme G.
Graeme is 52 years old, married and has two children.

hausa corruption

Pioneer also keeps the oil and gas reserves and production stream
beyond the limited term of the VPP and retains the upside of future
development drilling. (the "Company") is pleased to announce the appointment of
Mr. is a vertically integrated, international energy
company, celebrating its eighth year of operations in the Republic of
Kazakhstan.

civilian stifled

2 -- 1. Isautier commented saying, "Mr.com.

1966 africa

2%, or approximately $34 per BOE after adjustment for the
operating costs for which Pioneer maintains responsibility.0 7.
PetroKazakhstan shares trade in the United States on the NYSE, in Canada
on the TSX, in the United Kingdom on the London Stock Exchange and in Germany
on the Frankfurt Exchange under the symbol PKZ .petrokazakhstan.

Nigeria is the most populous state in Africa with 108 million inhabitants; its capital is Abuja.

populous until

Business Editors/Energy Editors

DALLAS----Pioneer Natural Resources
Company (NYSE:PXD) today announced that it has closed a third
volumetric production payment (VPP) transaction under which it sold
7.7 $68
2008 1. For more information, visit
Pioneer 's website at www. Isautier will remain Chairman of the Board. His executive experience
includes positions as Exploration and International Vice President with
Petro-Canada and Vice President of Strategic Planning and Business Development
and Vice President Canadian Oil + Gas Division with Nexen.

obasanjo rule

It is engaged in the acquisition, exploration, development and
production of oil and gas, refining of oil and the sale of oil and refined
products.

Nigeria has vast oil reserves, but its obvious economic potential has been somewhat stifled in recent years by corruption and bureaucracy.

somewhat obvious

3 2. Interest expense will
decrease as a result of the proceeds being applied to outstanding
debt.

colony until

4 2.

PetroKazakhstan Inc. - New Director and Officer Appointment

As of December 27, 2004,
PetroKazakhstan shares began trading on the Kazakhstan exchange under the
symbol CA_PKZ. Additionally he has
managed development and production operations in the Western Canada Basin as
well as having five years experience in corporate planning and business
development including significant acquisition and divestment initiatives .

once tribal

1966 abuja

8 $73
2007 1.3 $300

Scott D.
Pioneer's headquarters are in Dallas. Forward-looking statements and the
business prospects of Pioneer 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.
Mr. Phipps has thirty years of experience in the Canadian and
international oil and gas industry including Yemen, North Africa, Nigeria,
Indonesia , Malaysia, Australia, Mexico and Columbia. Phipps will be appointed President and CEO on
September 16, 2005.

once hausa

3 million barrels oil equivalent (BOE) of proved reserves, or less
than one percent of the Company's total proved reserves, for proceeds
of $300 million."
Barclays Capital, the investment banking division of Barclays Bank
PLC, has arranged or provided the capital to the purchaser of the VPP. Graeme is also an active member of the
Association of Professional Engineers, Geologists and Geophysicists of Alberta
(APEGGA).

The Federal Republic of Nigeria is situated on the Gulf of Guinea in West Africa.

Three tribal communities (Hausa, Yoruba and Ibo) dominate Nigeria.

ibo obvious

Pioneer Receives Proceeds of $300 Million from Third Volumetric Production Payment Transaction

2 $50
2010 1.

until abuja

The schedule of production
volumes sold and related deferred revenue amortization by year is as
follows:

Total Deferred Revenue
Oil Production Gas Production Production Amortization
Year (million (billion cubic (million (millions)
barrels) feet) BOE)
-------- -------------- ----------------- ----------- ----------------
2005 -- 1.

Neither The Toronto Stock Exchange or any other stock exchange or
regulator has approved or disapproved the information contained herein.

tribal hausa

3 1.
These risks and uncertainties include, among other things, volatility
of oil and gas prices, product supply and demand, competition ,
government regulation or action, international operations and
associated international political and economic instability,
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.
Mr. Phipps
Executive Vice President - Corporate Development

Graeme graduated with distinction from the University of Alberta with a
Bachelor of Science, Honours in Geology and Geophysics.

reserves until

In January of this year, Pioneer announced the closing of its
first two VPPs with proceeds totaling $593 million .
Pioneer is a large independent oil and gas exploration and
production company with operations in the United States, Argentina,
Canada, Equatorial Guinea, Nigeria, South Africa and Tunisia.

obasanjo civilian

"

PetroKazakhstan Inc.

civilian abuja

The
production sold represents less than 20% of Pioneer 's daily production
from the field during the term of the VPP and approximately 2% of the
Company 's proved Spraberry reserves.
The VPP is a particularly effective monetization strategy for
Pioneer 's longer-lived asset base due to the predictability of the
production stream and related operating costs. These VPPs
included oil reserves from the Spraberry field and gas reserves from
the Hugoton field. Phipps as Executive Vice President, Corporate Development and a
Director of the Company, effective May 3, 2005. He is a Professional
Geologist and Geophysicist and has held management positions previously at
Petro-Canada, Nexen and Esso Resources. Mr. He has 30 years of
experience in the Canadian and International oil and gas industry with 10
years of senior executive and board experience.

Nigeria was once a British colony; after its independence in 1966 the country was under military rule until the election in 1999 of President Obasanjo and the introduction of civilian rule.

bureaucracy abuja

2 $52
2009 1.1 $47
-------------- ----------------- ----------- ---------- ------
Total 6.pioneernrc. We welcome Graeme into our organization and look
forward to his successful leadership.

abuja once

Through the VPP, Pioneer sold a limited term overriding royalty
interest in a portion of its Spraberry oil and gas field.6 0.1 -- 1. The VPP proceeds, coupled with the strong free cash flow
we expect to generate this year, will enhance our financial
flexibility to develop future exploration successes, secure accretive ,
bolt-on acquisitions, support share repurchases and potentially
increase future dividends. Shelf of Australia, Indonesia and Malaysia.

stifled corruption

The VPP proceeds are not immediately taxable and will be included
in taxable income over the term of the VPP. Phipps has achieved spectacular
results in his career .
Graeme is a director of Tundra Oil and Gas Limited, director, officer and
VP Exploration with Ausam Energy Corporation and founding partner of a private
international investment fund.

colony nigeria

3 $10
2006 1.2 -- 1. Sheffield, Chairman and CEO, stated , "The VPP allows us
to unlock the value of our long-lived assets at today's high oil and
gas prices .com
Except for historical information contained herein, the statements
in this News Release are forward-looking statements that are made
pursuant to the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995.
Graeme's exploration experience includes the Western Canada Basin, the
Beaufort Sea and Arctic Islands, and off the east coast Canada and
internationally in the Gulf of Mexico, Alaska, Yemen, North Africa, Nigeria,
Colombia, N.

populous 108

For reporting purposes , Pioneer's production and reserves will be
reduced by the oil and gas volumes sold via the VPP, and the proceeds
will be reported as Deferred Revenue on the balance sheet.

corruption bureaucracy

The Company received over $41 per BOE at a discount
rate of 5. Over the
term of the VPP, the Deferred Revenue balance will be amortized and
reported as noncash oil and gas revenues, thereby causing oil and gas
revenues per BOE to rise as a result of the VPP volumes not being
reflected in production. Because Pioneer retains all operating costs
and the depreciation, depletion and amortization costs related to the
oil and gas production sold, these costs, when calculated on a per BOE
basis, will also increase , recognizing that the VPP volumes are not
included in production or proved reserves. These and other risks are described in Pioneer's 10-K and
10-Q Reports and other filings with the Securities and Exchange
Commission. PetroKazakhstan's website can be accessed at
http://www. Prior to this he
spent 20 years with Esso Resources and Exxon in various management and
operational positions.

populous inhabitants

1 1.2 6.
It is planned that Mr.

BIOGRAPHY

Graeme G.

bureaucracy obasanjo

The VPP transaction
allows the Company to accelerate this revenue stream at a low discount
rate , while eliminating commodity price and interest rate risk. CALGARY, May 4 - The Board of Directors of
PetroKazakhstan Inc.
Graeme has a broad business background and extensive experience, along
with well-developed public speaking, presentation and negotiating skills.