Pogo Makes Two Gulf of Mexico Discoveries

Pogo Producing Company has successfully drilled two different prospects in the central Gulf of Mexico. Paul G. Van Wagenen, Pogo's Chairman and Chief Executive Officer, said, "We are delighted to have found drilling success on these first two of four fourth-quarter Gulf of Mexico exploration prospects. Additionally, Pogo has two other exploratory wells currently being drilled on other prospective blocks in the Main Pass area of the central Gulf, each of which should reach its objective depth within a week or two. These first two wells, however, represent a good start to an exciting fourth-quarter exploration program."

Pogo, a 100% working interest owner of West Delta 54 which was acquired in the Louisiana State Waters sale of March, 2002, drilled well no. 1 to 12,804 feet subsea and encountered 33 feet of hydrocarbon column in its primary objective below 12,600 feet. The company drilled this well on a 350-acre structure, and has now flow-tested it at a rate of approximately 3 million cubic feet per day (mmcf/d) of natural gas and 730 barrels of oil. Development of this field will require only a caisson well protector, and it will flow through a 4.5-inch flow line to Pogo's production facilities at South Pass Block 24 field. Production from this structure should begin late in the first quarter of 2003.

Main Pass 62, Well No. 3, on a previously untested 200-acre "G-pod" structural feature located in the northwest corner of Pogo's highly productive 100%-owned Main Pass Blocks 61/62 field, discovered 40 feet of net natural gas pay in its primary Miocene objective. A caisson well protector will be set and a three-mile flow line will be laid to Pogo's production facilities in the 61/62 field. A similar caisson is already on order to develop the earlier natural gas discovery at the "E-pod" located in the northeast corner of Main Pass Block 61. Both of these two new gas discoveries should begin producing through the Main Pass Blocks 61/62 A-platform facilities by mid-year 2003.