PXP Completes Major Piceance Acquisition

Plains Exploration & Production Co. (PXP) on Thursday closed its previously announced acquisition of oil & gas and midstream properties in the Piceance Basin of Colorado covering over 55,000 net acres, over 200 producing/productive wells, over 3,000 additional potential drilling locations, and 40 miles of pipeline and gathering systems.

PXP paid $900 million in cash, issued 1 million PXP shares and paid closing adjustments of approximately $58 million from the January 1, 2007 effective date to closing. PXP funded the acquisition primarily with borrowings under its bank credit facility.

Effective May 31, PXP will be producing approximately 36 million cubic feet per day (MMCFPD) from the Piceance Basin assets and is scheduled to ramp production from these assets to over 70 MMCFPD in the fourth quarter following the completion of the 25% PXP owned Collbran Valley Gas System capacity expansion by mid-third quarter. PXP is presently operating 5 rigs in the Piceance Basin and is evaluating doubling the rig fleet in anticipation of additional pipeline sales capacity.

PXP plans to update full-year 2007 operating and financial guidance reflecting the impact of this acquisition by the end of the second quarter.

PXP is an independent oil and gas company primarily engaged in the upstream activities of acquiring, developing, exploiting, exploring and producing oil and gas in its core areas of operation: onshore and offshore California, Colorado, and the Gulf Coast region of the United States. PXP is headquartered in Houston, Texas.