Pogo Sells Hungarian Subsidiary

Pogo Producing has agreed to sell its wholly-owned subsidiary, Pogo Hungary, Ltd., to Toreador Resources Corporation. The purchase price for the transaction is approximately $9.0 million. Closing is expected by the end of June 2005.

Pogo's Chairman and Chief Executive Officer, Paul G. Van Wagenen, said, "The completion of this transaction is another step in implementing Pogo's 2005 Strategic Initiatives announced in January of this year. Although we were successful in Hungary, we unfortunately did not achieve the critical mass necessary to justify continued investment. However, Pogo leaves its Hungary License in good hands with the fine people of Toreador Resources Corporation."