FEBRUARY 7, 2002 – SAN ANTONIO, TEXAS – Pioneer Drilling Company (AMEX: PDC) today reported results for the third quarter and nine months ended December 31, 2001.

Revenues for the third quarter of 2002 were $16.5 million, an increase of 13 percent from $14.7 million in the same quarter last year. EBITDA, defined as earnings before interest, taxes, depreciation and amortization, increased 103 percent to $3.6 million in the third quarter of 2002 compared to $1.8 million in the same period last year. Net income attributable to common shareholders in the third quarter of 2002 was $0.6 million or $0.03 per diluted share, versus net income of $0.2 million or $0.02 per diluted share during the third quarter of 2001.

Contract drilling costs during the third quarter of 2002 included a $500,000 charge related to the settlement of a lawsuit from 1998 and a $275,000 charge related to severance costs.

Revenue days were 1,304 days during the third quarter of 2002 compared to 989 days for the third quarter of 2001 due to an increase in our rig fleet from 12 rigs in 2001 to 19 in 2002.

Drilling margins were 24.7 percent, or $4.1 million, up from drilling margins of 13.6 percent, or $2 million in the third quarter of 2001. Average rig utilization for the third quarter was 75 percent, down from 90 percent last year, primarily as a result of continued weakening in land drilling activity due to lower oil and gas prices.

Michael E. Little, Pioneer Drilling’s Chairman and Chief Executive Officer, stated, “As the market for land rigs has softened, we are focused on reducing and managing our cost structure while continuing to position ourselves as a premium quality contractor. With our fleet in excellent condition and our track record for providing first-rate operations, we believe our rigs will continue to be in demand.”

Revenues for the first nine months of 2002 were $52.6 million, an increase of 47 percent from $35.8 million in the first nine months of last year. EBITDA increased 288 percent to $16.7 million in the first nine months of 2002 compared to $4.3 million in the same period last year. Net income attributable to common shareholders in the first nine months of 2002 was $6.2 million or $0.36 per diluted share, compared to net income of $1.1 million or $0.09 per diluted share during the first nine months of 2001.

Pioneer Drilling’s management team will be holding a conference call on Thursday, February 7, 2001, at 11:00 a.m. eastern time. To participate in the call, dial 913-981-5532 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 February 14, 2001. To access the replay, dial 719-457-0820 and enter the pass code 716467.

Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by accessing http://www.easterlyir.com. To listen to the live call on the web, please visit the Easterly Investor Relations 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 20 land drilling rigs that drill in depth ranges between 10,000-18,000 feet, including a second 1700-hp technologically advanced land rig scheduled to begin its first contract in late February 2002.

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, 2001.

Statements of Operations - Unaudited

Three Months Ended Nine Months Ended

12/31/01 12/31/00 12/31/01 12/31/00

Revenues:
Contract drilling $ 1 6,515,000 $ 14,571,000 $ 52,452,000 $ 35,555,000
Other 2 4,000 111,000 156,000 211,000
Total operating revenues 1 6,539,000 14,682,000 52,608,000 35,766,000

Costs & Expenses:
Contract drilling 1 2,438,000 12,576,000 34,035,000 30,686,000
Depreciation 2 ,325,000 1,114,000 5,893,000 2,470,000
General & adm. 4 82,000 328,000 1,863,000 769,000
Total operating costs 1 5,245,000 14,018,000 41,791,000 33,925,000
Operating profit (loss) 1 ,294,000 664,000 10,817,000 1,841,000

Other income (expense):
Interest expense (481,000) ( 326,000) ( 1,008,000) ( 632,000)
Interest income 3 9,000 75,000 59,000 264,000
Total other (442,000) ( 251,000) ( 949,000) ( 368,000)
Earnings before taxes 8 52,000 413,000 9,868,000 1,473,000
Income taxes 3 01,000 155,000 3,531,000 182,000
Net income 5 51,000 258,000 6,337,000 1,291,000
Preferred dividends - 62,000 93,000 215,000
Net earnings to common shareholders $ 5 51,000 $ 196,000 $ 6,244,000 $ 1,076,000

Earnings (loss) per share:
Basic 0 .03 0.02 0.42 0.10
Diluted 0 .03 0.02 0.36 0.09

Weighted average number of shares outstanding:
Basic 1 5,920,000 1 1,986,000 14,847,000 10,817,000
Diluted 1 7,280,000 1 4,326,000 18,309,000 13,556,000
Operating statistics:
Utilization rate 75.3% 90.0% 87.0% 90.0%
Revenue days 1 ,304 989 4,144 2,461
Drilling margin $ 4 ,077,000 $ 1,995,000 $ 18,417,000 $ 4,869,000
Drilling margin/day $ 3 ,126 $ 2,017 $ 4,444 $ 1,978
Drilling margin % of revenue 24.7% 13.6% 35.0% 13.6%
EBITDA $ 3 ,619,000 $ 1,778,000 $ 16,710,000 $ 4,311,000
EBITDA as % of revenues 21.9% 12.1% 31.8% 12.1%

Condensed Consolidated Balance Sheets - Unaudited

12/31/01 3/31/01

Assets
Total current assets $ 17,526,000 8,252,000
Net property, plant and equipment 66,597,000 48,195,000
Other assets 32,000 46,000
Total assets $ 84,155,000 56,493,000

Liabilities and Equity
Total current liabilities $ 17,825,000 23,431,000
Long-term debt 26,645,000 10,056,000
Deferred taxes 6,354,000 5,179,000
Total shareholders' equity 33,331,000 17,827,000 $ 84,155,000 56,493,000