Pogo Closes Sale of Thailand Oil and Gas Assets

Pogo Producing Company has closed the previously announced sale of Thailand assets to PTTEP Offshore Investment Company Limited and Mitsui Oil Exploration Co., Ltd., for $820 million in cash.

Completing the sale of our Thailand assets brings successful closure to one of Pogo's most important strategic goals for 2005," said Paul G. Van Wagenen, Chairman and Chief Executive Officer of Pogo. "We will direct these proceeds toward Pogo's pending acquisition of Northrock Resources."

On July 11, 2005, the Company announced that it had entered into a definitive agreement to acquire Northrock Resources Ltd., a wholly owned Canadian subsidiary of Unocal Corporation. That transaction is expected to close during the third quarter of 2005.

"We believe that this strategic repositioning of our assets should enable Pogo to deliver continued growth in both reserves and production for the next several years," Mr. Van Wagenen said.