NOVEMBER 7, 2002 – SAN ANTONIO, TEXAS – Pioneer Drilling Company (AMEX: PDC) today reported results for the three months and six months ended September 30, 2002.

Revenues for the fiscal second quarter of 2003 were $17.0 million compared to revenues of $17.7 million in the second quarter of 2002. Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $1.6 million in the second quarter of 2003 compared to $6.2 million in the same period last year. Net loss attributable to common shareholders in the second quarter of 2003 was $1.3 million, or $0.08 loss per share, versus net income of $2.6 million, or $0.15 per diluted share, during the second quarter of 2002.

Second quarter 2003 results reflect the impact of continued weak demand for land rigs and the ensuing low dayrates. Contract drilling costs were higher in the 2003 second quarter as compared to the previous year’s period due to the increased percentage of turnkey contracts which include higher third-party expenses. Additionally, the quarter was negatively effected by extremely wet conditions in July that delayed the movement of several rigs to the next scheduled drilling project for, in some cases, as much as two weeks. Second quarter earnings comparisons were also impacted by a 45 percent increase in depreciation due to the growth in the Company’s rig fleet from 17 rigs in the fiscal second quarter of 2002 to 22 in the fiscal second quarter of 2003.

Revenue days were 1,577 days during the second quarter of fiscal 2003 compared to 1,399 days for the second quarter of fiscal 2002. Drilling margin was 13.6 percent, or $2.3 million for the second fiscal quarter of 2003, versus drilling margin of 38.4 percent, or $6.8 million in the second quarter of 2002. Average rig utilization for the second quarter was 78 percent, down from 87 percent in the same period last year.

Revenues for the first six months of fiscal year 2003 were $35.4 million compared to revenues of $36.1 million for the first six months of fiscal year 2002. EBITDA, was $4.4 million in the six months of 2003 compared to $13.1 million in the same period last year. Net loss attributable to common shareholders during the fiscal six months of 2003 was $1.5 million, or $0.09 loss per share, versus net income of $5.7 million, or $0.35 per diluted share, during the six months of fiscal 2002.

Revenue days were 3,030 days during the first six months of fiscal 2003 compared to 2,840 days for the comparable period of fiscal 2002. Drilling margin was 16.0 percent, or $5.7 million in the six month period in fiscal 2003, versus drilling margin of 39.8 percent, or $14.3 million in the first six months of fiscal 2002. Average rig utilization for the six months of 2003 was 78 percent, down from 93 percent last year in the six month period.

Michael E. Little, Pioneer Drilling’s Chairman and Chief Executive Officer, stated, “Although rig demand continued to be weak and weather conditions were very poor in the second quarter we have been successful at keeping our rigs utilized and are beginning to see a slight increase in overall demand. We have remained focused on building a fleet of premium rigs and are looking forward to the addition of two 1500 HP SCR land rigs to our fleet in our fiscal third quarter. A rig being delivered in November 2002 will begin working on a three-well contract with an option for additional wells. We are currently negotiating a multi-well contract for the other rig, which, is scheduled to be delivered in December. In addition, on September 30, 2002, we signed an agreement to purchase for $3.4 million a Cabot 1200 rig capable of drilling to 14,000 feet. This new rig is expected to be delivered in our fiscal fourth quarter.”

Pioneer Drilling’s management team will be holding a conference call on Thursday, November 7, 2002, at 11:00 a.m. eastern time. To participate in the call, dial (303) 262-2144 at least ten 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 November 14, 2002. To access the replay, dial (303) 590-3000 and enter the pass code 504392.

Investors, analysts and the general public will also have the opportunity to 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 fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live web cast, an archive will be available shortly after the call. For more information, please contact Karen Roan at Easterly Investor Relations at (713) 529-6600 or email karen@easterly.com.

Pioneer Drilling Company provides contract land drilling services to independent and major oil and gas operators drilling wells in central, south and east Texas. The Company’s fleet consists of 22 land drilling rigs that drill in depth ranges between 10,000-18,000 feet, with three additional 1500 HP SCR land rigs scheduled to be added in November 2002, December 2002 and March 2003 and a Cabot 1200 scheduled to be added in the Company’s 2003 fiscal fourth quarter.

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 Company’s anticipated growth, demand from the Company’s customers, capital spending by oil and gas companies and the Company’s expectations regarding its new rigs.

Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including, among other matters: general and regional economic conditions and industry trends; the continued strength or weakness of the contract land drilling industry in the geographic areas where the Company operates; decisions about onshore exploration and development projects to be made by oil and gas companies; the highly competitive nature of the contract land drilling business; the Company’s future financial performance, including availability, terms and deployment of capital; the continued availability of qualified personnel; and changes in governmental regulations, including those relating to the environment.

Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. These risks, as well as others, are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the fiscal year ended March 31, 2002 and subsequent Form 10-Q’s.

                           - tables to follow -

                         PIONEER DRILLING COMPANY
                   Statements of Operations - Unaudited

                          Three Months Ended            Six Months Ended
                        9/30/2002     9/30/2001     9/30/2002     9/30/2001
  Revenues:
   Contract drilling $ 16,967,260  $ 17,669,147  $ 35,398,437  $ 35,936,952
   Other                   10,493        32,664        22,433       131,540
   Total operating
    revenues           16,977,753    17,701,811    35,420,870    36,068,492
  Costs and Expenses:
   Contract drilling   14,664,215    10,873,318    29,746,517    21,597,261
   Depreciation         2,827,364     1,954,837     5,515,645     3,567,156
   General and
    administrative        617,023       642,208     1,124,908     1,380,324
   Bad debt expense       110,000           ---       110,000           ---
    Total operating
     costs             18,218,602    13,470,363    36,497,070    26,544,741
  Operating profit
   (loss)              (1,240,849)    4,231,448    (1,076,200)    9,523,751
  Other income (expense):
   Interest expense      (667,132)     (223,343)   (1,226,922)     (527,527)
   Interest income         29,845         7,709        53,396        20,050
   Gain on sale
    of securities             ---           ---       203,887           ---
   Total other           (637,287)     (215,634)     (969,639)     (507,477)
  Earnings (loss)
   before taxes        (1,878,136)    4,015,814    (2,045,839)    9,016,274
  Income tax expense
   (benefit)             (576,237)    1,404,253      (572,339)    3,230,463
  Net earnings (loss)  (1,301,899)    2,611,561    (1,473,500)    5,785,811
  Preferred dividends         ---        32,814           ---        92,814

  Net earnings (loss)
   to common         $ (1,301,899) $  2,578,747  $ (1,473,500) $  5,692,997

  Earnings (loss)
   per share:
    Basic            $      (0.08) $       0.17  $      (0.09) $       0.40
    Diluted          $      (0.08) $       0.15  $      (0.09) $       0.35
  Weighted average
   number of shares
   outstanding:
    Basic              16,137,459    15,248,205    16,046,229    14,307,998
    Diluted            16,137,459    17,356,824    16,046,229    16,751,309
  Operating
   statistics:
   Utilization rate         78.0%         87.0%         78.0%         93.0%
   Revenue days             1,577         1,399         3,030         2,840
   Drilling margin   $  2,303,045  $  6,795,829  $  5,651,920  $ 14,339,691
   Drilling
    margin/day       $      1,460  $      4,858  $      1,865  $      5,049
   Drilling margin
    % of revenues           13.6%         38.4%         16.0%         39.8%
   EBITDA            $  1,586,515  $  6,186,285  $  4,439,445  $ 13,090,907
   EBITDA as %
    of revenues              9.3%         34.9%         12.5%         36.3%


                           PIONEER DRILLING COMPANY
                    Condensed Consolidated Balance Sheets

                                                  (Unaudited)
                                                   9/30/2002      3/31/2002
              Assets
  Current assets:
     Cash and cash equivalents                 $   7,421,629      5,383,045
     Securities available for sale                       ---        337,309
     Receivables, net                              6,392,675      6,160,797
     Contract drilling in progress                 1,796,449      3,120,252
     Federal income tax receivable                   698,053        880,068
     Prepaid expenses                                203,084        634,747
        Total current assets                      16,511,890     16,516,218
  Net property, plant and equipment               76,912,274     66,731,626
  Other assets                                       185,559        201,914
  Total assets                                 $  93,609,723     83,449,758

      Liabilities and Equity
  Current liabilities:
     Notes payable                             $   6,032,458      6,329,925
     Current long-term debt                        2,105,356      1,945,989
     Accounts payable                              8,634,345      6,507,169
     Accrued expenses                              2,238,276      2,034,408
        Total current liabilities                 19,010,435     16,817,491
  Long-term debt                                  35,191,775     26,118,601
  Deferred taxes                                   7,552,934      7,170,661
        Total liabilities                         61,755,144     50,106,753
  Total shareholders' equity                      31,854,579     33,343,005
                                               $  93,609,723     83,449,758