Pogo Reports Preliminary Impact of Hurricane Ivan

Pogo Producing reports the estimated current and continuing impact of Hurricane Ivan to its oil and gas production. Based on information gathered to date, Pogo's company-operated Gulf of Mexico platforms did not sustain major damage as a result of Hurricane Ivan. However, damages to outside owned and operated platforms, pipelines and onshore terminals are continuing to cause a meaningful component of Pogo's Gulf of Mexico production to remain shut-in. Pogo estimates its third quarter production will be reduced due to Ivan by approximately 0.9 billion cubic feet of natural gas and 400,000 barrels of oil. These reserves are not lost, but production of them is deferred.

Pogo's offshore Gulf of Mexico production was suspended beginning September 14, 2004. Although production from the western part of the Gulf of Mexico has been restored, some of the production from the eastern sector of the central Gulf of Mexico has not. Some 23,000 barrels of Pogo's oil per day and 33 million cubic feet of net natural gas per day from Main Pass, South Pass, West Delta and Viosca Knoll areas remain shut-in. Repairs to the infrastructure are underway but Pogo does not expect to restore production from most of these fields for approximately one more month. Repairs to certain of the more heavily damaged facilities, affecting about 18 mmcfe/d of Pogo's daily production volumes, are not expected to be completed until mid- December.

As a result, Pogo's company-wide production estimates for the full year of 2004 are now revised to an estimated average of 320 mmcf/d and 53,000 barrels of oil per day, a daily reduction for the year of 10 mmcf/d and 5,000 barrels of oil per day below Pogo's pre-storm 2004 estimate. Approximate year-end exit rates of 340 mmcf/d and 56,000 barrels are presently anticipated as production climbs toward full capacity.
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