NEW NAME REINFORCES SERVICE EXPANSION

NEW NAME, NEW GEAR

New business cards and equipment and hard hat decals will be distributed by late July.

New building and office signs will go up at the end of July.

PAGE 2 The Pioneer brand

PAGE 2 Our vision and core values

PAGE 2 Successful start to drilling campaign

PAGE 3 Colombia earns top rig honors, ISO certifications

PAGE 3 Well Servicing hits 100-rig milestone, earns safety award

PAGE 3 Daily check-in meeting adopts Live Safe focus

PAGE 4 Staying safe this summer

PAGE 4 Community comes together after tornado

PAGE 4 Meet the expanded Pioneer Spirit editorial committee

PAGE 4 Wireline Services welcomes two new facilities

I n t h I s I s s u E

PioneerSpiritS u M M e r 2 0 1 2

It’s official. Pioneer’s name has

caught up with the Company’s

business. Pioneer Drilling is now Pioneer

Energy Services.

The addition of production services,

most recently the acquisition of coiled

tubing services provider Go Coil late last

year, put the Company’s name out of sync

with what we do. In the first quarter of

2012, production services contributed 46%

of revenue and 52% of operating margin.

As part of the corporate name change,

individual service company names –

Pioneer Drilling Services, Pioneer Well

Services, Pioneer Wireline Services, Pioneer

Fishing and Rental Services, and Go Coil

– are being discontinued for marketing

and general use. These business units

will simply be called Drilling Services, Well

Servicing, Wireline Services, Fishing and

Rental Services, and Coiled Tubing Services.

To promote the new Company

name and reinforce Pioneer’s expanded

services, clients will receive a series of

communications, including personal visits,

a brochure, letters and emails. The Pioneer

website has been updated. New data

sheets and other sales materials are being

created, and advertising will run in trade

journals later in the year.

Building the Pioneer Brand

A new logo, Company colors and updated

design approach accompany the name

change. Uniforms, hard hats and building

signs will soon reflect the new look.

“The new name, logo and updated

design help communicate who we are

and how we’re changing,” says Olena

(Leanna) Khrystyuk, Director of Corporate

Marketing. “We’re also updating how we

describe the Company. Pioneer has unique

advantages that are important to clients.

We need to emphasize those advantages

with the right words and photographs in

our promotional materials.”

Revised Mission and Core Values

In a related project, Pioneer reviewed and

revised the Company’s vision and core

values (on page 2). The updated wording

of both emphasizes Pioneer’s safety

commitment and LiveSafe culture.

“The vision and values reflect who

Pioneer is and what we believe in as a

Company,” said Stacy Locke, President

and CEO. “They provide a foundation for

everything we do, from hiring and financial

decisions to safety decisions on the jobsite.”

“Our new branding emphasis fits well with

our vision and core values,” says Leanna.

“The way Pioneer people treat clients and

each other is something that sets us apart

from the competition. Our vision and core

values foster that difference.”

I S S u e 8

Pioneer Spirit Summer 2012 | 1

THE PIONEER BRAND

With your help we’ve made some

important changes at Pioneer in the

past few years. Now we’re making another one –

changing our name. But our new name is just part of

the story.

About a year ago we asked a branding and

communications company to interview some of our best clients. The overall

mission was to bring our expanding service offerings under one name and one

“brand identity.” We knew it was important to start marketing ourselves differently,

not just as a collection of disconnected services – some with the Pioneer name,

some without.

The research by the consultant, Pennebaker, started with some fundamental

questions:

• How is Pioneer perceived in the marketplace?

• Where are there opportunities for improvement?

• What are the unmet needs in the marketplace today?

• How will the industry evolve in the future?

• Who is currently providing the best service and why?

The answers revealed a lot of great things about Pioneer. Most of all, we stand

out in the industry for our commitment to excellent client service, problem solving

and positive collaboration. Each of these is driven by one thing: Pioneer people.

In short, you are the Pioneer brand. It’s not our name. It’s not our logo. It’s

the total client experience that you help create. Our new marketing materials

convey that. They highlight Pioneer as the “personal” energy services provider, the

company clients can count on to care about their projects and success as much

as they do.

The Personal energy Services Provider

The consultant’s research showed that some of our competitors come off as

arrogant, inflexible and self-centered. We’re perceived as partners.

This creates an opportunity for us. It’s also a big responsibility. Our clients are

rooting for us to succeed. But we have to be better than our competitors and

treat every client – and each other – with dignity and respect – every day. At

Pioneer, it’s not just OK to care about our clients and your fellow employees. It’s

the essential ingredient of our success. It’s who we are.

Preserving a Great Relationship

We can only successfully market what is true. Keeping the Pioneer brand true – and

preserving the great relationship we have with clients – is my job and yours.

Not sure how to contribute? Keeping our clients safe and each other safe is

the most important contribution any of us can make. Understanding our vision and

living our core values are also essential.

Together we have built a winning team that clients want to work with. That’s a

fantastic accomplishment! Now we have a new name that truly reflects who we

are and a brand that we all helped build and can take pride in. Take a bow, and tell

a friend about Pioneer Energy Services.

Wm. Stacy Locke

President and CEO

OuR VISION AND CORE VAluES

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Drilling of seven wells for Exaro Energy

LLC at the Sun Lyda field in South Texas

is off to a strong start. The proof: three

record-length wells, a record number of

days since a non-recordable accident, and

cost savings for the client of more than

$1.2 million.

After drilling wells ranging from 8,900 to

9,440 feet, the South Texas Division Drilling

Rig #1 team received high praise from

Exaro Energy Drilling Superintendent Arvid

Mosnes. Here’s what he had to say:

“Pioneer Drilling Rig #1’s managers,

drillers and crews have a very positive

attitude, great work ethic and dedicated

professionalism, all of which are key

factors for a safe and efficient drilling

operation. They have excelled on all levels

and in all areas and are among the best I’ve

worked with in my career working around

the world.

“Pioneer Drilling Rig #1 has operated

really well. It’s a fast-moving and very

functional rig with minimum downtime,

and it’s practically tailored for drilling

10,000-foot wells but can also go deeper

depending on well design.

“It’s been a tremendous experience to

kick off this project on behalf of Exaro

Energy with such a finely tuned and

hardworking team as the crews on Drilling

Rig #1 and seeing each well coming in well

under budget and ahead of schedule.”

SuCCESSFul START TO EXARO ENERgy DRIllINg CAMPAIgN

The Pioneer Drilling Rig #1 team got off to a record-setting start working with Exaro Energy LLC in South Texas. Standing left to right are: Brett Perez, Manuel Herrera, Jose Cano, Marcial Gonzalez, Eduardo Carmona, Arvid Mosnes (Exaro), Juan Carmona, Isaias Rodriguez, Ernest Garcia, Aaron Baudin, Israel Flores and Chris Ludwig. Kneeling left to right are: Osvaldo Vasquez, Juan de Leon, Roland Chase and Angel Castaneda.

red West, Joe eustace, Carlos Pena, Lorne Phillips, Leanna Khrystyuk and Stacy Locke were members of the team that reviewed and revised the Company’s vision and core values. Here are Pioneer energy Services’ vision and core values, as approved by senior management.

VisionPioneer Energy Services: A company whose culture of dignity and respect for all people enables us to visualize and commit to living and working in an environment that is fulfilling and free of incident or injury.

ValuesIntegrity: We employ the highest ethical standards, demonstrating honesty and integrity in every aspect of our business.

Safety: We keep our people and the public safe.

Service Excellence: We hold ourselves accountable to provide the best service possible.

Environmental Stewardship: We protect and preserve the environment we work in.

Pioneer Spirit Summer 2012 | 2

“ These achievements are the result of the commitment made five years ago to focus on outstanding service and excellence in all phases of the operation.”

Drilling Services’ Colombia Division Vice President/General Manager Jose “Pepe” Portero

COlOMBIA EARNS TOP RIg HONORS, ISO CERTIFICATIONS

WEll SERVICINg HITS 100-RIg MIlESTONE, EARNS SAFETy AWARD

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Pioneer’s operations in Colombia continue

to advance after a strong 2011. Last year

our Drilling Rig #21 and Drilling Rig #51 were

recognized as the first- and second-best

drilling rigs working for Ecopetrol, and the

business received several certifications

from the International Organization for

Standardization (ISO).

“The Drilling Rig #21 team helped

Ecopetrol improve key performance

indicators,” says Drilling Services’ Colombia

Division Vice President/General Manager

Jose “Pepe” Portero. Ecopetrol is Colombia’s

largest integrated oil and gas company.

“The Drilling Rig #51 crew also excelled.

Their hard work and performance was

unmatched on a national level.”

The ISO certifications – 9001, 14001

and 18000 – were awarded after a series

of thorough and complex audits. The

certifications cover several areas:

• Quality management systems

• Environmental management systems

• Safety and occupational health

• Information technology

“This recognition allows us to continue

being part of a select group of companies in

the oil industry,” Pepe says. “It also confirms

that our work complies with Colombia’s

high standards. We are looking forward to

receiving our next certification, ISO 26000,

which covers social responsibility.”

These achievements, Pepe says, are

the result of the commitment made

five years ago to focus on outstanding

service and excellence in all phases of

the operation. “We have been building

excellence step-by-step,” he says. “We

want our operators to receive the best

drilling service in the country.

“The way to excellence is long and

still needs everyone’s efforts to make

sure we are successful,” Pepe says.

“For this reason I want to say thanks to

everyone for their support and loyalty

to the Company.”

The phenomenal growth of the Well

Servicing business unit was front and

center at this year’s Offshore Technology

Conference (OTC) in Houston, as Pioneer’s

100th well servicing rig was on full display

for nearly 90,000 attendees.

“There are very few well servicing

companies that have grown to 100 rigs as

quickly as we have,” says Well Servicing

Business Manager Daniel Hindes. “In 2004

the Company started with just five rigs.

Today Pioneer is the sixth-largest well

servicing company in the U.S.”

The rig at OTC carried a sticker

noting Well Servicing’s recognition by the

Association of Energy Service Companies

(AESC) as a gold medal safety award

winner for 2011. “Our family of employees

demonstrated their commitment to safety

by having the lowest recordable incident

rate in the industry and winning the gold

for the first time,” Daniel says.

The Company previously won silver and

bronze safety awards. All 100 Pioneer well

servicing rigs will soon display the gold

medal sticker.

The Drilling Rig #21 team was recognized as the top-performing drilling rig for Colombia client Ecopetrol in 2011.

RIg #100: STANDOuT SAFETy FEATuRES

Well Servicing Rig #100, showcased at OTC, offers two key

features expected from an industry safety leader:

• Crown out/floor out prevention: Keeps the operator from

crowning or dropping the block that travels through the derrick

beyond a certain point.

• BOP bypass system: Prevents tubing from being pulled with

the blowout preventer (BOP) rams closed.

“If you try to pull tubing with the BOP closed, you’ll either part

the tubing down in the hole and have a fishing job, or in the worst

case you will pull the derrick in on itself,” Business Manager Daniel

Hindes says. “This is a huge safety feature.”

The rig can also elevate the operator’s console up to 33 feet,

which Daniel says is perfect for snubbing-assisted completion of

oil and gas shale wells.

After its high-profile debut, Rig #100 went to work in the Eagle

Ford Shale of South Texas.

Well Servicing celebrated the arrival of its 100th rig by putting it on display at the Offshore Technology Conference in Houston. From left to right are Well Servicing Vice President Joe Freeman and District Managers James Bomar and Mike Miller.

Well Servicing’s Lonnie Neitermayer receives the Association of Energy Service Companies gold medal safety award from 2011-2012 AESC President Angie Sims.

DAIly CHECK-IN MEETINg ADOPTS lIVE SAFE FOCuS

The daily 7 a.m. check-in meeting

at Drilling Services’ West Texas

Division office in Midland has a new

component, and the conversation

they’ve started is helping keep

everybody safe.

“During our check-in meeting,

where we set the agenda for the

day, we now ask if anyone has

something going on in their personal

or business lives that could be a

distraction and affect their job

performance,” says Superintendent

Roger Dyer. “If there is an issue,

we look out for that individual

throughout the day to make sure

they don’t hurt themselves or

endanger others.”

Overcoming Reluctance

The discussions began more

than six months ago during

training meetings for the LiveSafe

safety program. Roger credits

Superintendent Waylon Collins for

making them part of the office’s

daily routine. “Since we started it

here at the office, we now have

several rigs doing it too,” he says.

Roger notes that in the beginning

people were reluctant to open

up about personal issues, but the

comfort level improved over time.

“It’s become easier to share, and as

a result we’ve helped each other

get through some troubling times

and stay safe on the job,” he says.

The talks have also brought

the group closer together, Roger

says. “This will help us in the long

run because if you care about

somebody you don’t want to see

them get hurt.”

Pioneer Spirit Summer 2012 | 3

Texting while driving is as dangerous as driving drunk, studies show.

Every season has its safety challenges. In summer, driving and weather pose some of

the greatest risks. But with a few preparations and precautions, everyone can work

and play safely this summer.

On the Road

Summer driving can mean more vehicles on the road due to vacation travel and greater

stresses on your engine and cooling system. According to insurance companies and

automotive groups, best practices for safe driving include:

• Keep a safe distance – use the “two-second” rule.

• Seat belts save lives – about 17,000 per year in the U.S.

• Eliminate distractions – turn off electronic devices.

• Make full stops at every stop sign.

• Take breaks during long drives (15 minutes every two hours is recommended).

• Slow down in storms to avoid hydroplaning.

• Check all fluids, tires, wipers, battery, hoses, lights and brakes and replace as needed.

Weather Warnings

Thunderstorms, tornadoes, heat and humidity can turn a typical summer day lethal with

little warning. U.S. weather services advise everyone to:

• Stay informed – know the forecast and be alert to changing conditions.

• Don’t start anything that can’t be stopped if storms threaten.

• Slow down and dress for the conditions.

• Keep hydrated and learn the symptoms of heat-related illnesses.

• Recognize that if you hear thunder, you can be struck by lightning.

• Avoid tall trees, poles or metal fences if you are unable to find shelter.

• Lie flat in a ditch or other low-lying area if you cannot get inside.

STAyINg SAFE THIS SuMMER

Gennifer Martin

knows about the

power of tornadoes.

She also knows

about the power of a

community to clean

up and recover.

Gennifer, the

office manager at the Fishing and Rental

Services facility in Woodward, Okla.,

had a front-row seat to the terrifying

tornado that hit the town on Sunday,

April 15, killing six people and destroying

more than 200 homes and businesses.

She also witnessed the strength of the

community’s spirit as clean-up efforts

began the next morning.

Gennifer’s biggest scare was that it

was prom night and she couldn’t reach

her daughter Isabella. “We were already in

our neighbor’s cellar and the phones were

not working,” she says. “The twister had

already touched down when we heard

a banging on the cellar door and it was

Isabella, in her prom dress.”

With her family and property safe,

Gennifer joined the massive clean-up

effort that brought people from all over the

region to northwest Oklahoma. Cleaning

up at a friend’s house, Gennifer and other

volunteers welcomed Oklahoma Governor

Mary Fallin, who was touring the area.

“The governor spoke with all of us,

asked about our concerns and gave each

of us her card so we could call her directly,”

Gennifer says. A photo of the meeting was

featured in the Daily Oklahoman newspaper.

Gennifer adds that everyone from

the office volunteered to assist in the

recovery. “We are a close-knit community,

and the willingness to get involved and help

other people is really strong,” she says.

Strong demand for wireline services in both

the North and South regions has prompted

the Company to move into new facilities in

Williston, North Dakota, and Laredo, Texas.

Each recently held grand opening events to

showcase their industry-leading capabilities.

Building in a Boom Town

In Williston, the 25,000-square-foot building

and 15-acre tract support nine cased-hole

units and one open-hole unit. Typically, 60

to 65 people work at the facility.

“Business has been really good, with

horizontal drilling just taking off in the last

two years,” says Williston District Manager

Greg Paluck, noting that North Dakota now

ranks as the country’s second-largest oil-

producing state. “We’re one of the largest

cased-hole wireline facilities in the Bakken,

and we’re working closely with the big

fracking companies.”

Williston’s rapid population growth from

the oil and gas boom means waiting in line

for key services, Greg says. “We’ve been

using our previous facility to maintain a full-

service shop as we transition, and we should

be fully moved in by mid-July,” he says.

Improved Presentation

In Laredo, Wireline Services’ new home

for about 35 employees is a build-to-suit

facility in an industrial park. It offers more

bays, more offices and more room to grow

than the previous location.

“We’ve had several clients and potential

clients come through and they’ve been

impressed with Pioneer’s presentation,” says

Laredo District Manager Eddie Sanchez.

The new facility will help support our

rapid growth in the region, says Gulf Coast

Sales Manager Larry Tidwell. “We moved

into Laredo in 2010 and after just two years

it has become a very sizeable business.”

Drilling Services

Adrian Acosta

Carl “J.R.” Brown

Felicia Buddington

Chantell Carlson

Tony Cuevas

Barbra Harper

Elizabeth Hughes

Joyce Jones

John Martinez

Brenda Mendoza

Nathan Poche

Micheal Potts

Ericka Rodriguez

Paul Snelling

Charlie Walsh

Coiled Tubing Services

Jude Aucion

Jackie Broussard

Bryan Clark

Mark Denette

Well Servicing

George Aguilar

Kirk Carmody

Herby Dauphinet

Stanley Fields, Jr.

Krystal Frank

Daniel Hindes

Mary Kay Wood

Claudia Minter

Sara Parker

Janie Salinas

Donna Smith

Sheila Wall

Fishing and Rental

Services

Amy Morris

Randy Watson

Wireline Services

Brett Becker

Kelly Bloom

Randy Conley

Julie Cosper

Patricia DeJean

Connie Elsenpeter

Charlotte Felton

Danny Hazel

David Kalil

Amy King

Marcia Korver

Mike Meisner

Oscar Montalvo

Monte Schmidt

Monica Schroeder

Karen Segovia

Susan Thomas

Larry Tidwell

Crystal Tyler

COMMuNITy COMES TOgETHER AFTER TORNADO

MEET THE EXPANDED PIONEER SPIRIT EDITORIAl COMMITTEE

WIRElINE SERVICES WElCOMES TWO NEW FACIlITIES

The Pioneer Energy Services newsletter is published by Pioneer Energy Services for our employees.

Questions or comments should be directed to Newsletter@pioneeres.com. The online version of the newsletter can be found on www.pioneeres.com. A Spanish version is available upon request.

Pioneer energy Services1250 NE Loop 410, Suite 1000San Antonio, Texas 78209pioneeres.com

editorial CommitteeJ. Blaine DavidLeanna KhrystyukAlma Green

editorial CoordinationRick Schwalbach

DesignPennebakerpennebaker.com

Pioneer Spirit Summer 2012 | 4

Meet the Wireline Services welcoming committee for the Williston grand opening. In the front row (left to right) are Kathy Greig, Martin O’Neil and Scott Mathews. Back row (left to right) are Tim Schmidt, Greg Paluck, Clayton Lee, Levi Allard and Ryan Slapnicka.

The Laredo team was out in force for their grand opening event in May. Hope there was enough cake for everyone.

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