Pogo Acquires Stake in Bakken Shale Play in North Dakota

Pogo Producing Company has acquired approximately 46,000 net leasehold acres in the Bakken Shale play, located in North Dakota.

"We are pleased to announce the acquisition of some very intriguing Bakken Shale leases, a newly emerging unconventional resource target, thereby building Pogo's inventory of prospective onshore acreage," said Paul G. Van Wagenen, Chairman and Chief Executive Officer of Pogo. "With this new operational area, Pogo strengthens its onshore North American presence, now totaling more than 275,000 net leasehold acres of prime unconventional resources, including the Mannville and Ardley Coal Bed Methane plays in Alberta, the New Albany Shale in southwestern Indiana, the Barnett Shale in north Texas and now, the Bakken Shale play in North Dakota. Our shareholders stand to benefit from Pogo's balanced portfolio of conventional low-risk development and high-potential exploration opportunities, now supplemented by a new and growing inventory of unconventional resource projects."

Pogo's new acreage position is located in the oil-rich Williston Basin in Dunn and Williams Counties, North Dakota. Pogo expects to drill the first two horizontal wells on this new acreage during the fourth quarter of 2006.

This new Bakken Oil Shale play is distinguished by very rich source rocks encasing fractured middle member dolomitic siltstones at subsurface depths of approximately 10,000 feet. This developing play has advanced recently through improved horizontal drilling capabilities and modern completion technologies.