Pogo Finalizes Sale of Northrock Resources for $2.0 Billion in Cash
Pogo Producing has closed the previously announced sale of its wholly-owned subsidiary, Northrock Resources Ltd. ("Northrock"), to Abu Dhabi National Energy Company PJSC ("TAQA") for approximately $2.0 billion in cash.
On a pro forma basis Pogo will have a focused onshore U.S. asset base with proven reserves of approximately; 1.3 tcfe with approximately 81% in the Western U.S. Division (includes 720 bcfe in the Permian Basin and Texas Panhandle, 244 bcfe in the Rockies and 101 bcfe in the San Juan Basin) and 19% in the onshore Gulf Coast Division, including 180 bcfe in south Texas; reserves mix that is 65% natural gas; and reserves life of 12 years.
Also as previously announced, on July 17, 2007, Pogo entered into a definitive merger agreement to be acquired by Plains Exploration & Production in a stock and cash transaction. Under the terms of the agreement, Pogo stockholders will receive (on an aggregate basis) 0.68201 shares of PXP common stock and $24.88 of cash for each share of Pogo common stock. Pogo stockholders will have the right to elect to receive cash or stock, subject to proration if either the cash or stock election is oversubscribed. The transaction, which is subject to stockholder approval from both companies, closing of the Northrock disposition, and other customary conditions, is expected to close in the fourth quarter of 2007.
Pogo Producing Company explores for, develops and produces oil and natural gas. Headquartered in Houston, Pogo owns approximately 1,900,000 gross leasehold acres in major oil and gas provinces in the United States, 6,354,000 acres in New Zealand and 1,480,000 acres in Vietnam. Pogo common stock is listed on the New York Stock Exchange under the symbol "PPP."
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