SAN ANTONIO, June 3 /PRNewswire-FirstCall/ -- Pioneer Drilling Company (AMEX:PDC) today reported results for the three months and twelve months ended March 31, 2003.

Revenues for the fiscal fourth quarter of 2003 were $25.1 million compared to revenues of $16.2 million in the fourth quarter of 2002. EBITDA(1) for the fourth quarter of 2003 was $1.4 million in the fourth quarter of 2003 compared to $3.0 million in the same period last year. Net loss attributable to common shareholders in the fourth quarter of 2003 was $1.9 million, or $0.11 loss per share, versus net loss of $19,000, or $0.00 per diluted share, during the fourth quarter of 2002.

Revenue days were 1,808 days during the fourth quarter of fiscal 2003 compared to 1,240 days for the fourth quarter of fiscal 2002. Drilling margin was 8 percent, or $2.0 million for the fourth fiscal quarter of 2003, versus drilling margin of 22 percent, or $3.6 million in the fourth quarter of 2002. Average rig utilization for the fourth quarter was 84 percent, up from 69 percent in the same period last year.

Michael E. Little, Pioneer Drilling's Chairman and Chief Executive Officer, stated, "Although higher oil and gas prices have stimulated additional drilling activity, the reactivation of stacked rigs and the addition of numerous 'new builds' in the South and East Texas markets by a few drilling contractors kept land drilling dayrates from rising during our fourth quarter and they remain substantially lower than the dayrates a year ago. Despite the weak environment, we have remained focused on adding quality rigs to our land drilling fleet. During the fiscal year ended March 31, 2003, we added two additional refurbished 18,000-foot SCR rigs and the two rigs acquired from United Drilling Company, increasing our fleet to a total of 24 rigs at March 31, 2003. In May 2003, we took delivery of another 18,000-foot refurbished SCR rig and expect to take delivery of a Cabot 1200 rig in the summer of 2003. We remain confident that the U.S. land drilling sector will improve as evidenced by the fact that we have been bidding at higher dayrates since March 31st."

Revenues for the twelve months of fiscal year 2003 were $80.2 million compared to revenues of $68.7 million for the twelve months of fiscal year 2002. EBITDA was $7.3 million for the full year of 2003 compared to EBITDA of $19.7 million in the same period last year. Net loss attributable to common shareholders during the twelve months of 2003 was $5.1 million, or $0.31 loss per share, versus net income of $6.2 million, or $0.35 per diluted share, during the twelve months of fiscal 2002.

Revenue days were 6,419 days during the full year of fiscal 2003 compared to 5,384 days for the comparable period of fiscal 2002. Drilling margin was 12 percent, or $9.4 million in the twelve month period in fiscal 2003, versus drilling margin of 33 percent, or $22.5 million in the twelve months of fiscal 2002. Average rig utilization during 2003 was 79 percent, down from 82 percent last year.

Pioneer Drilling's management team will be holding a conference call on Tuesday, June 3, 2003, at 11:00 a.m. eastern time. To participate in the call, dial (303) 262-2130 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 June 10, 2003. To access the replay, dial (303) 590-3000 and enter the pass code 539483.

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 DRG&E at (713) 529-6600 or email kroan@drg-e.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 25 land drilling rigs that drill in depth ranges between 10,000-18,000 feet, with an additional Cabot 1200 rig expected to be delivered in the Summer of 2003.

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 and the U. S. land drilling sector. 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.

  (1)  EBITDA is earnings before net interest, income taxes and depreciation
       and amortization.  The Company believes EBITDA is a useful measure of
       evaluating its financial performance because of its focus on the
       Company's results from operations before net interest, income taxes,
       depreciation and amortization.  EBITDA is not a measure of financial
       performance under generally accepted accounting principles.  However,
       EBITDA is a common alternative measure of operating performance used
       by investors, financial analysts and rating agencies.  A
       reconciliation of EBITDA to net earnings (loss) is included below.
       EBITDA as presented may not be comparable to other similarly titled
       measures reported by other companies.


                   EBITDA Reconciliation to Net Income
                            Three Months Ended            Year to Date
                           3/31/03      3/31/02       3/31/03      3/31/02

  EBITDA                 1,437,196    2,989,392     7,259,287   19,698,944
  Depreciation          (3,438,557)  (2,533,560)  (11,960,387)  (8,426,082)
  Net interest            (777,090)    (587,342)   (2,604,294)  (1,536,052)
  Income tax
   (expense) benefit       870,428      112,704     2,219,776   (3,418,525)
  Net earnings (loss)   (1,908,023)     (18,806)   (5,085,618)   6,318,285
  Preferred dividends          ---          ---           ---       92,814
  Net earnings (loss)
   applicable to common
   shareholders         (1,908,023)     (18,806)   (5,085,618)   6,225,471

                      - Financial Tables to Follow -


                PIONEER DRILLING COMPANY AND SUBSIDIARIES
                         Statements of Operations

                            (Unaudited)
                        Three Months Ended            Twelve Months Ended
                      3/31/03        3/31/02        3/31/03        3/31/02
  Revenues:
    Contract
     drilling     $ 25,070,762   $ 16,142,930   $ 80,183,486   $ 68,627,486
    Other                2,871         29,273         37,614         72,096
    Total
     operating
     revenues       25,073,633     16,172,203     80,221,100     68,699,582

  Costs & Expenses:
    Contract
     drilling       23,081,669     12,539,090     70,823,310     46,145,364
    Depreciation     3,438,557      2,533,560     11,960,387      8,426,082
    General &
     administrative    554,768        643,721      2,232,390      2,855,274
    Bad debt expense       ---            ---        110,000            ---
    Total operating
     costs          27,074,994     15,716,371     85,126,087     57,426,720

  Operating profit  (2,001,361)       455,832     (4,904,987)    11,272,862

  Other income (expense):
    Interest expense  (798,413)      (608,951)    (2,698,529)    (1,616,984)
    Interest income     21,323         21,609         94,235         80,932
    Other                  ---            ---        203,887            ---
    Total other       (777,090)      (587,342)    (2,400,407)    (1,536,052)

  Earnings
   before taxes     (2,778,451)      (131,510)    (7,305,394)     9,736,810

  Income tax
   (expense) benefit   870,428        112,704      2,219,776     (3,418,525)

  Net earnings
   (loss)           (1,908,023)       (18,806)    (5,085,618)     6,318,285

  Preferred
   dividends               ---            ---            ---         92,814
  Net earnings (loss)
   applicable to
   common
   shareholders   $ (1,908,023)  $    (18,806)  $ (5,085,618)  $  6,225,471

  Earnings per share:
    Basic         $      (0.11)  $        ---   $      (0.31)  $       0.41
    Diluted       $      (0.11)  $        ---   $      (0.31)  $       0.35

  Weighted average
   number of shares
   outstanding:
    Basic           16,422,274     15,922,459     16,163,098     15,112,272
    Diluted         16,422,274     17,365,962     16,163,098     19,221,256

  Operating statistics:
    Utilization rate       84%            69%            79%            82%
    Revenue days         1,808          1,240          6,419          5,384
    Drilling
     margin       $  1,989,093   $  3,603,840   $  9,360,176   $ 22,482,122
    Drilling
     margin/day   $      1,100   $      2,906   $      1,458   $      4,176
    Drilling margin
     % of revenues          8%            22%            12%            33%


                PIONEER DRILLING COMPANY AND SUBSIDIARIES
                  Condensed Consolidated Balance Sheets

                                              3/31/2003           3/31/2002
                    Assets
  Current assets:
     Cash and cash equivalents            $  21,002,913          5,383,045
     Securities available for sale                  ---            337,309
     Receivables, net                         4,499,378          6,160,797
     Contract drilling in progress            4,429,545          3,120,252
     Federal income tax receivable              444,900            880,068
     Current deferred income taxes              180,991                ---
     Prepaid expenses                           914,187            634,747
        Total current assets                 31,471,914         16,516,218
  Net property, plant and
     Equipment                               87,855,903         66,731,626
  Other assets                                  366,500            201,914
  Total assets                            $ 119,694,317         83,449,758

            Liabilities and Equity
  Current liabilities:
     Notes payable                        $     587,177          6,329,925
     Current long-term debt                   2,811,986          1,945,989
     Accounts payable                        14,206,586          6,507,169
     Accrued expenses                         2,721,856          2,001,613
        Total current liabilities            20,327,605         16,784,696
  Long-term debt                             45,854,542         26,118,601
  Deferred taxes                              5,839,908          7,203,456
        Total liabilities                    72,022,055         50,106,753
  Total shareholders' equity                 47,672,262         33,343,005
                                          $ 119,694,317         83,449,758