AUGUST 9, 2004 – SAN ANTONIO, TEXAS – Pioneer Drilling Company (AMEX: PDC) announced today that the public offering price of the pending sale of 9,582,018 shares of its common stock has been set at $6.90 per share. 

Of the shares to be sold in the offering, 4,000,000 shares will be sold by the Company and 5,582,018 shares will be sold by certain selling shareholders. The offering is larger than the 8.6 million shares originally announced, with the additional shares coming from WEDGE Energy Services, LLC.

Pioneer Drilling will not receive any proceeds from the sale of stock by the selling shareholders. The sale of shares by the Company represents a new financing. In connection with the offering, Pioneer Drilling has granted the underwriters an option to purchase up to an additional 600,000 shares of common stock to cover over-allotments, if any. The underwriters also can purchase an additional 837,302 shares from WEDGE Energy Services, LLC.

The offering is expected to close on or about August 11, 2004. Jefferies & Co. is acting as book-running manager for the common stock offering. Copies of the prospectus relating to the offering may be obtained from Jefferies & Co., Attention: Prospectus Department, 520 Madison Avenue, New York, NY 10022.

Pioneer Drilling Company provides land contract drilling services to independent and major oil and gas operators drilling wells in North, East and South Texas and North Louisiana. Pioneer’s fleet consists of 36 land drilling rigs that drill in depth ranges between 8,000 and 18,000 feet.