Pioneer Energy Selected by Department of Energy for $27 Million to Advance Methane Emission Reduction from Oil Production

Pioneer Energy announced today they have been selected by the U.S. Department of Energy for four different awards which collectively total $27 million. Three of these are intended to advance the company's Emission Control Treater™ (ECT), a breakthrough near zero emissions well pad production technology that can increase crude yield by 5-10%.

The ECT is a closed system that completely processes the crude, resulting in zero routine flaring with no need for atmospheric storage tanks. It performs better separation than existing phase separators, resulting in no flash gas left in the crude and a lot less heavy NGLs left in the gas. This new technology utilizes state-of-the-art, cloud-connected automation, giving operators the ability to not only monitor their production but also to control it remotely from a centralized dashboard, saving manpower, field trips, and maintenance costs. Additionally, the ECT is modular, which enables easier right sizing of equipment throughout the life of the well pad. This results in better CAPEX utilization and reduced lifetime total cost of ownership.

The fourth grant, in partnership with Emvolon, Inc., will advance a novel flare gas to methanol system.

Each project will involve extended demonstration of equipment on oil producer well pad locations. Colorado School of Mines and Montrose Environmental Group (NYSE:MEG) will provide third-party assessment of the flaring and methane emissions reductions achieved.

The projects are as follows:

Commercial Scale Turnkey Near Zero Emissions and Zero Flaring Oil Production Facility

This $10MM award by the DOE's Office of Fossil Energy and Carbon Management (FECM) provides funds to scale the ECT from pilot to a commercial scale of 2,500 BPD and deploy units with Bayswater Exploration & Production and Prairie Operating (NASDAQ:PROP) for six-month field trials in Colorado. Work has already begun on this project with expected field deployment in Q4 2025.

Zero-Emission Sweetening & Stabilization Production Facilities for Sour Sites

Pioneer has been selected for this $6MM award by the DOE and EPA, which will provide funds to adapt the 2,500 BPD ECT for use in processing sour crude oil. The technology will be demonstrated in partnership with Bayswater Exploration and Production. In addition to demonstration of emissions reduction, the system is projected to sweeten the crude down to low sulfur concentration of parts per million.

Zero-Emission Drop-In Replacement Production Facilities for Marginal Conventional Wells

Pioneer has been selected for this $5MM award by the DOE and EPA, which will provide funds to scale down the ECT. These mini-ECT systems will be inexpensive, drop-in replacements for surface infrastructure at marginal wells. The technology will be demonstrated for 12 months on several sites operated by Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) in the Cotton Valley Basin in East Texas.

Methane Emission Mitigation through Onsite Methanol Synthesis

Pioneer has been selected for this $6MM award by the DOE and EPA, which will provide funds to package MIT invented gas to liquids technology, to convert flare gas to methanol. The work will be performed in collaboration with Emvolon, Inc., who has the exclusive rights to the technology. The technology will be demonstrated for 12 months in the Eagle Ford of Texas.

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"We are thrilled to receive the support of the Department of Energy to help us scale and commercialize our zero emissions technology. Deploying our Emission Control Treater (ECT) will result in a substantial increase in oil revenues. The new grants will help us demonstrate the wide applicability of the ECT including processing sour crude, and for low producing wells, while simultaneously eliminating or greatly reducing unwanted flaring," said Pioneer Energy's CEO Eyal Aronoff. "At Pioneer Energy we believe that energy security is an important aspect of the energy transition, and that through deployment of innovative technology it can be achieved with nearly zero production site emissions."

DOE Announcements:

U.S. DEPARTMENT OF ENERGY INVESTS $32 MILLION TO HELP ELIMINATE NATURAL GAS FLARING AT OIL PRODUCTION OPERATIONS

https://content.govdelivery.com/accounts/USDOEOFE/bulletins/39ca9c7

U.S. DEPARTMENT OF ENERGY AND U.S. ENVIRONMENTAL PROTECTION AGENCY ANNOUNCE $850 MILLION TO REDUCE METHANE POLLUTION FROM THE OIL AND GAS SECTOR

https://content.govdelivery.com/accounts/USDOEOFE/bulletins/3c8852e

About Pioneer Energy

Pioneer Energy, Inc. is a provider of technologies that help the oil and gas industry to increase production revenues and decrease operational expenses, while also eliminating flaring and oilfield emissions. The company's product lines include the Emission Control Treater™ (ECT), a zero-emission oil production system which increases crude production volumes; Pegasus field gas conditioning systems which save on fuel costs, decrease field operations costs, reduce emissions and improve uptime for well pad production and hydraulic fracturing operations; and flare gas capture and processing equipment. Pioneer's systems help oil producers to be good stewards of the environment while converting emissions to resources which help to support domestic energy security. To learn more, visit http://pioneerenergy.com/.

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Nicole Lane, Corporate Relations Officer

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Joseph E. Palaia, IV, Vice President of Business Development

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