NOVEMBER 1, 2001 – SAN ANTONIO, TEXAS – Pioneer Drilling Company (AMEX: PDC) today reported record revenues, EBITDA and net income for the second quarter and six months ended September 30, 2001.

Revenues for the second quarter of 2002 were $17.7 million, an increase of 45 percent from $12.2 million in the same quarter last year. EBITDA, defined as earnings before interest, taxes, depreciation and amortization, increased 364 percent to $6.2 million in the second quarter of 2002 compared to $1.3 million in the same period last year. Net income attributable to common shareholders in the second quarter of 2002 was $2.6 million or $0.15 per diluted share, compared to net income of $307,000 or $0.03 per diluted share during the second quarter of 2001.

Revenue days increased 62 percent to 1,399 days during the second quarter of 2002 compared to 864 days for the second quarter of 2001. Drilling margins increased to 38.4 percent, or $6.8 million, up from drilling margins of 12.6 percent, or $1.5 million in the second quarter of 2001. Average rig utilization for the second quarter was 87 percent primarily due to having two rigs in planned stages of refurbishment during the quarter and two additional rigs between contracts at the end of the quarter.

Michael E. Little, Pioneer Drilling’s Chairman and Chief Executive Officer, stated, “We are pleased to report another quarter of solid growth and improved margins. As we continue to grow, we continue to upgrade and invest in our rigs to provide our employees and customers the safest and highest quality rigs available.”

Revenues for the first six months of 2002 were $36.1 million, an increase of 71 percent from $21.1 million in the first six months of last year. EBITDA, defined as earnings before interest, taxes, depreciation and amortization, increased 417 percent to $13.1 million in the first six months of 2002 compared to $2.5 million in the same period last year. Net income attributable to common shareholders in the first six months of 2002 was $5.7 million or $0.35 per diluted share, compared to net income of $880,000 or $0.08 per diluted share during the first six months of 2001.

Pioneer Drilling’s management team will be holding a conference call on Thursday, November 1, 2001, at 11:00 a.m. eastern time. To participate in the call, dial 913-981-4911 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 7, 2001. To access the replay, dial 719-457-0820 and enter the pass code 717865.

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 19 land drilling rigs that drill in depth ranges between 10,000-18,000 feet. Pioneer Drilling also has a 1700-hp technologically advanced land rig under construction.

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 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.

                           - tables to follow -

   PIONEER DRILLING COMPANY
   Statements of Operations - Unaudited

                             Three Months Ended         Six Months Ended
                          09/30/2001   09/30/2000   09/30/2001   09/30/2000
  Revenues:
    Contract drilling    $17,669,147  $12,178,551  $35,936,952  $20,983,544
    Other                     32,664       36,311      131,540       99,568
    Total operating
     revenues             17,701,811   12,214,862   36,068,492   21,083,112
  Costs & Expenses:
    Contract drilling     10,873,318   10,634,411   21,597,261   18,110,862
    Depreciation           1,954,837      842,412    3,567,156    1,354,878
    General & adm.           642,208      246,634    1,380,324      441,655
    Total operating
     costs                13,470,363   11,723,457   26,544,741   19,907,395
  Operating profit
   (loss)                  4,231,448      491,405    9,523,751    1,175,717
  Other income
   (expense):
    Interest expense        (223,343)    (197,191)    (527,527)    (305,587)
    Interest income            7,709      101,913       20,050      188,997
    Total other             (215,634)     (95,278)    (507,477)    (116,590)
  Earnings before taxes    4,015,814      396,127    9,016,274    1,059,127
  Income taxes             1,404,253       12,995    3,230,463       27,405
  Net income               2,611,561      383,132    5,785,811    1,031,722
  Preferred dividends         32,814       76,000       92,814      152,000
  Net earnings
   to common
   shareholders           $2,578,747     $307,132   $5,692,997     $879,722

  Earnings (loss) per
   share:
    Basic                       0.17         0.03         0.40         0.09
    Diluted                     0.15         0.03         0.35         0.08
  Weighted average
   number of shares
   outstanding:
    Basic                 15,248,205   11,111,591   14,307,998   10,228,683
    Diluted               17,356,824   14,147,856   16,751,309   13,176,127
  Operating statistics:
    Utilization rate           87.0%        96.0%        93.0%        90.0%
    Revenue days               1,399          864        2,840        1,470
    Drilling margin       $6,795,829   $1,544,140  $14,339,691   $2,872,682
    Drilling margin/day       $4,858       $1,787       $5,049       $1,954
    Drilling margin %
     of revenue                38.4%        12.6%        39.8%        13.6%
    EBITDA                $6,186,285   $1,333,817  $13,090,907   $2,530,595
    EBITDA as % of
     revenues                  34.9%        10.9%        36.3%        12.0%


   PIONEER DRILLING COMPANY
   Condensed Consolidated Balance Sheets - Unaudited

                                               09/30/2001        03/31/2001
            Assets
  Total current assets                        $10,601,605         8,252,184
  Net property, plant and equipment            59,428,640        48,194,458
  Other assets                                     26,516            46,322
  Total assets                                $70,056,761        56,492,964

     Liabilities and Equity
  Total current liabilities                   $22,089,843        23,431,378
  Long-term debt                                9,208,940        10,055,621
  Deferred taxes                                5,983,658         5,179,203
  Total shareholders equity                    32,774,320        17,826,762
                                              $70,056,761        56,492,964