FEBRUARY 2, 2006 – SAN ANTONIO, TEXAS – Pioneer Drilling Company (AMEX: PDC) today reported results for the three months ended December 31, 2005, which is the third quarter of its current fiscal year.

Revenues for the third quarter of fiscal 2006 grew to $74.5 million, compared to revenues of $46.4 million in the third quarter of fiscal 2005, due to the continued strong demand for rigs in the Company’s operating markets. This 61% increase in revenues was generated by a 20% increase in average revenues per day to $15,795 per day, coupled with a 34% increase in the average number of rigs in Pioneer Drilling’s fleet. Average drilling margin (1) per day increased 67% to $6,667 in the third quarter of fiscal 2006 compared to $3,982 in the third quarter of fiscal 2005 and sequentially increased 11% from the second quarter of fiscal 2006.

Net earnings for the third quarter of fiscal 2006 were $13.8 million, or $0.29 per diluted share, compared to net earnings of $4.2 million, or $0.11 per diluted share, for the third quarter of fiscal 2005. Weighted average shares of common stock outstanding on a diluted basis increased 20% to 47.3 million shares for the third quarter of fiscal 2006 from 39.5 million shares for the third quarter of fiscal 2005.

Revenue days during the third quarter of fiscal 2006 increased 34% to 4,714, compared to 3,524 revenue days for the third quarter of fiscal 2005. As compared to a year ago, the revenue days by type of contract shifted significantly toward daywork contracts. In the third quarter of fiscal 2006, revenue days by type of contract were 4,269 for daywork contracts, zero in the third quarter of fiscal 2005 were 2,421 for daywork contracts, 1,024 for turnkey contracts and 79 for footage contracts. Pioneer Drilling’s rig utilization rate remains steady at 96% for the third quarter of fiscal 2006 compared to 98% in the prior third quarter.

Wm. Stacy Locke, Pioneer Drilling’s President and Chief Executive Officer, stated, “Demand for drilling rigs remained strong throughout the quarter. Dayrates continue to increase, which should further drive margin improvement. During our third quarter, we completed two rigs out of our 13 rig new-build program. Both are 1500-horsepower electric rigs. One rig went to our East Texas division under a one-year term contract and the other rig went to our North Texas division under a two-year term contract.

In January, we delivered our third rig, a 1500- horsepower rig to our North Dakota division. That rig is now under a two-year contract. This increases our marketable fleet to 55 rigs. We anticipate completing two to three more rigs by our March 31, 2006 fiscal year-end and the remainder by the end of this calendar year. Additionally, we continue to explore opportunities to add to our rig-build program under the right terms and conditions.”

“We also devote substantial resources to maintaining and upgrading our rig fleet. In the short-term, these actions result in fewer revenue days, higher costs and slightly lower utilization; however, in the long term, we believe the upgrades help the marketability of our rigs and improve their operating performance throughout good and bad phases of the energy cycle. We expended approximately $16.4 million on rig upgrades during the nine months ended December 31, 2005.

We are currently performing safety and equipment upgrades to a number of rigs, in particular, rigs acquired through acquisitions during the past two years,” added Mr. Locke. Revenues for the first nine months of fiscal year 2006 were $201.3 million, compared to revenues of $129.9 million for the first nine months of fiscal year 2005. Net earnings during the first nine months of fiscal 2006 were $32.6 million, or $0.69 per diluted share, compared to a net income of $5.3 million, or $0.16 per diluted share, during the first nine months of fiscal 2005.

Revenue days were 13,463 during the first nine months of fiscal 2006, compared to 9,687 revenue days for the comparable period of fiscal 2005. Pioneer Drilling’s rig utilization rate for the first nine months of fiscal 2006 was 95%, compared to 96% in last year’s comparable ninemonth period.

Pioneer Drilling’s management team will be holding a conference call today, Thursday, February 2, 2006, at 11:00 a.m., Eastern time (10:00 a.m., Central), to discuss these results. To participate in the call, dial (303) 262-2055 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 February 9, 2006. To access the replay, dial (303) 590-3000 and enter the pass code 11052180#.

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

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 Karen Roan at DRG . To listen to the live call on the Web, please visit Pioneer Drilling’s&E at (713) 529-6600 or e-mail  kcroan@drg-e.com.

Pioneer Drilling provides land contract drilling services to independent and major oil and gas operators drilling wells in North, East and South Texas, Western Oklahoma and in the Rocky Mountain region. Its fleet consists of 55 land drilling rigs that drill in depth ranges between 6,000 and 18,000 feet. (1) Drilling margin represents drilling revenues less drilling costs.

The Company 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 our management. A reconciliation of drilling margin to net income 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 continued increase in dayrates, margin improvement, the anticipated timing for delivery of the rigs we are adding to our fleet and the effects of capital expenditures to upgrade our 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. Such statements are subject to various risks, uncertainties and assumptions, including, among other matters, risks and uncertainties relating to rig construction difficulties.

Should one or more of those 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 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, 2005 and subsequent filings with the SEC.

                PIONEER DRILLING COMPANY AND SUBSIDIARIES
             Condensed Consolidated Statements of Operations
                  (in thousands, except per share data)
                               (Unaudited)

                         Three Months Ended           Nine Months Ended
                  September 30,    December 31,          December 31,
                      2005       2005       2004        2005       2004
  Revenues:
  Contract drilling  $66,973    $74,459    $46,388    $201,308   $129,889

  Costs and Expenses:
   Contract drilling  40,279     43,029     32,357     122,466    100,802
   Depreciation        7,941      8,598      5,770      23,869     16,124
   General and
    administrative     1,581      1,545      1,215       4,612      2,911
   Bad debt expense        -         25        342          25        342
    Total operating
     costs            49,801     53,197     39,684     150,972    120,179

  Operating income    17,172     21,262      6,704      50,336      9,710

  Other income (expense):
   Interest expense      (49)        (1)      (159)       (204)    (1,275)
   Loss on early
    extinguishment of
    debt                   -          -          -           -       (101)
   Interest income       449        398         55       1,349        119
   Other                  17          9          7          39         22
    Total other          417        406        (97)      1,184     (1,235)

  Income before
   taxes              17,589     21,668      6,607      51,520      8,475

  Income tax expense  (6,508)    (7,876)    (2,428)    (18,922)    (3,157)

  Net earnings       $11,081    $13,792    $ 4,179     $32,598    $ 5,318

  Earnings per share:
    Basic              $0.24      $0.30      $0.11       $0.70      $0.16
    Diluted            $0.24      $0.29      $0.11       $0.69      $0.16

  Weighted average number
   of shares outstanding:
    Basic             46,366     46,542     38,428      46,308     33,001
    Diluted           47,086     47,326     39,535      47,010     37,167



                PIONEER DRILLING COMPANY AND SUBSIDIARIES
                  Condensed Consolidated Balance Sheets
                              (in thousands)

                                           (Unaudited)
                                        December 31, 2005   March 31, 2005
       Assets
  Current assets:
   Cash and cash equivalents                  $32,579           $69,673
   Marketable securities                            -             1,000
   Receivables, net                            34,899            26,108
   Contract drilling in progress                9,478             5,365
   Current deferred income taxes                  985               570
   Prepaid expenses                             2,529             1,877
    Total current assets                       80,470           104,593

  Net property and equipment                  234,467           170,566
  Other assets                                    365               850
                                             $315,302          $276,009

    Liabilities and Equity
  Current liabilities:
   Notes payable                             $      -          $    682
   Current long-term debt                          46             4,733
   Accounts payable                            17,517            15,622
   Federal income taxes payable                 5,022               196
   Prepaid drilling contracts                       -               173
   Accrued expenses                             9,357             6,860
    Total current liabilities                  31,942            28,266
  Long-term debt                                    1            13,445
  Other non-current liability                     351               400
  Deferred taxes                               22,353            12,283
   Total liabilities                           54,647            54,394
  Total shareholders' equity                  260,655           221,615
                                             $315,302          $276,009


                PIONEER DRILLING COMPANY AND SUBSIDIARIES
                           Operating Statistics
                              (in thousands)
                               (Unaudited)

                      Three Months Ended            Nine Months Ended
                   September 30,    December 31,       December 31,
                       2005       2005       2004     2005        2004

  Revenues by contract:
   Daywork contracts  $59,236    $67,896    $26,824  $173,006    $59,277
   Turnkey contracts    2,237          -     18,544    10,830     66,235
   Footage contracts    5,500      6,563      1,020    17,472      4,377
   Total              $66,973    $74,459    $46,388  $201,308   $129,889

  Drilling costs by contract:
   Daywork contracts  $34,554    $37,978    $18,146  $101,646    $44,401
   Turnkey contracts    1,313          -     13,582     7,463     53,153
   Footage contracts    4,412      5,051        628    13,357      3,248
   Total              $40,279    $43,029    $32,356  $122,466   $100,802

  Drilling margin by contract (1):
   Daywork contracts  $24,682    $29,918     $8,678   $71,360    $14,876
   Turnkey contracts      924          -      4,962     3,367     13,082
   Footage contracts    1,088      1,512        392     4,115      1,129
   Total              $26,694    $31,430    $14,032   $78,842    $29,087

  Capital expenditures:
   Rig additions      $13,665    $22,595    $39,027   $45,572    $43,270
   Other               16,504     18,005      5,972    46,072     19,069
                      $30,169    $40,600    $44,999   $91,644    $62,339

  Reconciliation of drilling
  margin to net earnings:
   Drilling margin    $26,694    $31,430    $14,032   $78,842    $29,087
   Depreciation        (7,941)    (8,598)    (5,770)  (23,869)   (16,124)
   General and
    administrative     (1,581)    (1,545)    (1,215)   (4,612)    (2,911)
   Bad debt expense         -        (25)      (342)      (25)      (342)
   Other income
    (expense)             417        406        (97)    1,184     (1,235)
   Income tax expense  (6,508)    (7,876)    (2,429)  (18,922)    (3,157)
   Net earnings       $11,081    $13,792     $4,179   $32,598     $5,318

   (1) Drilling margins represent drilling revenues less drilling costs


                PIONEER DRILLING COMPANY AND SUBSIDIARIES
                           Operating Statistics
                               (Unaudited)

                         Three Months Ended            Nine Months Ended
                      September 30,    December 31,       December 31,
                          2005       2005       2004     2005        2004

  Average number of
   rigs                    50.7       53.3       39.7     51.3        37.1
  Utilization rate           95%        96%        98%      95%         96%

  Revenue days by contract:
   Daywork contracts      3,942      4,269      2,421   11,635       5,680
   Turnkey contracts         96          -      1,024      558       3,667
   Footage contracts        408        445         79    1,270         340
   Total                  4,446      4,714      3,524   13,463       9,687

  Average revenues per day:
   Daywork contracts    $15,027    $15,904    $11,080  $14,869     $10,436
   Turnkey contracts    $23,302    $     -    $18,109  $19,409     $18,062
   Footage contracts    $13,480    $14,748    $12,911  $13,757     $12,874
   All contracts        $15,064    $15,795    $13,163  $14,953     $13,409

  Average costs per day:
   Daywork contracts    $ 8,766    $ 8,896    $ 7,495  $ 8,736     $ 7,817
   Turnkey contracts    $13,677    $     -    $13,264  $13,375     $14,495
   Footage contracts    $10,814    $11,351    $ 7,949  $10,517     $ 9,553
   All contracts        $ 9,060    $ 9,128    $ 9,182  $ 9,096     $10,406

  Drilling margin per day:
   Daywork contracts    $ 6,261    $ 7,008    $ 3,584  $ 6,133     $ 2,619
   Turnkey contracts    $ 9,625    $     -    $ 4,846  $ 6,034     $ 3,567
   Footage contracts    $ 2,667    $ 3,398    $ 4,962  $ 3,240     $ 3,321
   All contracts        $ 6,004    $ 6,667    $ 3,982  $ 5,856     $ 3,003