Pogo Wins Four New Gulf Coast Offshore Leases

Pogo Producing Company bid on 10 tracts and was high bidder on 4 of them at the federal oil and gas lease sale held today. The sale covered areas in the central part of the Outer Continental Shelf, offshore from the Louisiana coastline.

The total bonus for the 4 lease blocks on which Pogo Producing Company ("Pogo") was the high bidder was $3,635,850. When they are officially awarded, Pogo will own 50% of each of these new lease blocks. The successful bids on each block are as follows:

          BLOCK          TOTAL BID     POGO'S %       POGO'S SHARE
     Ewing Bank 998     $1,357,350        50%            $678,675
     Viosca Knoll 821   $1,337,500        50%            $668,750
     West Delta 146       $383,500        50%            $191,750
     Main Pass 249        $557,500        50%            $278,750

Pogo's Chairman, Paul G. Van Wagenen, said, "We are extremely pleased with this lease sale. All of these outercontinental shelf lease blocks are located in our core areas of interest. We have identified some good exploration prospects on these blocks using newly acquired 3-D seismic information and we look forward to an early award so that we might begin drilling on some of those prospects before the end of this year."