PXP Increases and Prices Public Offering of Common Stock

HOUSTON, April 22 /PRNewswire-FirstCall/ — Plains Exploration & Production Company (NYSE: PXP), today announced that it has increased its previously announced offering of 10,000,000 shares of its common stock to 12,000,000 shares and has priced the offering at $18.70 per share to the public. PXP has granted the underwriters a 30-day option to purchase up to an additional 1,800,000 shares of common stock. The offering is expected to settle and close on April 27, 2009, subject to customary closing conditions. Net proceeds from the offering are expected to be used for general corporate purposes, including future capital expenditures.

Barclays Capital Inc. and J.P. Morgan Securities Inc. are acting as joint book-running managers of the offering. The offering will be made only by means of a final prospectus supplement and accompanying base prospectus, copies of which may be obtained from: Barclays Capital Inc., c/o Broadridge, Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, New York 11717; Barclaysprospectus@broadridge.com (phone: 888-603-5847), or J.P. Morgan Securities Inc., Attention: Prospectus Library, 4 Chase Metrotech Center, CS Level, Brooklyn, New York 11245 (phone: 718-242-8002; fax: 718-242-8003). A copy of the final prospectus supplement and accompanying base prospectus may also be obtained at no charge at the Securities and Exchange Commission’s website, at www.sec.gov.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the shares of common stock or any other securities, nor will there be any sale of the shares of common stock or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

PXP is an independent oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas in California, Texas, Louisiana and the Gulf of Mexico. 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 proposed offering,
• reserve and production estimates,
• oil and gas prices,
• the impact of derivative positions,
• production expense estimates,
• cash flow estimates,
• future financial performance,
• capital and credit market conditions,
• 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, 2008, 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.

SOURCE Plains Exploration & Production Company