June 19, 2008
PXP Announces Piceance Gas Basin Expansion With Over 800 New Drilling Locations and an Estimated 75 MMBOE of Resource Potential for $162 Million
HOUSTON, June 19 /PRNewswire-FirstCall/ -- Plains Exploration & Production Company ("PXP") and a subsidiary of Occidental Petroleum Corporation ("Oxy") have entered into an agreement with an undisclosed third party to acquire 11,500 acres immediately adjacent to PXP's existing Piceance Gas Basin assets.
PXP and Oxy, a 50% owner in our Piceance Gas Basin assets, have agreed to pay $162 million for a 95% working interest comprising approximately 11,500 net acres. PXP will operate these properties which include over 800 future drilling locations and an estimated 75 million barrels of oil equivalent of unproved resource potential net to PXP and Oxy.The transaction is expected to close by the end of the second quarter subject to customary closing conditions.
PXP is an independent oil and gas company primarily engaged in the upstream activities of acquiring, developing, exploring and producing oil and gas in its core areas of operation: California, Rockies, Gulf Coast, Gulf of Mexico, Texas Panhandle, South Texas and the Permian Basin of the United States. PXP is headquartered in Houston, Texas.
ADDITIONAL INFORMATION & FORWARD LOOKING STATEMENTS
This press release contains forward-looking information regarding PXP that is intended to be covered by the safe harbor "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements included in this press release that address activities, events or developments that PXP expects, believes or anticipates will or may occur in the future are forward-looking statements. These include statements regarding:
* completion of the proposed transaction, * reserve and production estimates, * oil and gas prices, * the impact of derivative positions, * production expense estimates, * cash flow estimates, * future financial performance, * planned capital expenditures, and * other matters that are discussed in PXP's filings with the SEC.
These statements are based on our current expectations and projections about future events and involve known and unknown risks, uncertainties, and other factors that may cause our actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements. Please refer to our filings with the SEC, including our Form 10-K for the year ended December 31, 2007, for a discussion of these risks.
All forward-looking statements in this report are made as of the date hereof, and you should not place undue reliance on these statements without also considering the risks and uncertainties associated with these statements and our business that are discussed in this report and our other filings with the SEC. Moreover, although we believe the expectations reflected in the forward-looking statements are based upon reasonable assumptions, we can give no assurance that we will attain these expectations or that any deviations will not be material. Except for any obligation to disclose material information under the Federal securities laws, we do not intend to update these forward-looking statements and information.
Plains Exploration & Production Company
CONTACT: Investors, Hance Myers, Vice President Investor Relations+1-713-579-6291, or Media, Scott Winters, Vice President CorporateCommunications, +1-713-579-6190, both of Plains Exploration & ProductionCompany, 1-800-934-6083
Web site: http://www.pxp.com/