Pogo Drills Three Successful Wells

Pogo Producing Company has successfully drilled exploratory wells in three different regions -- the Gulf of Mexico, South Texas and Thailand, according to Paul G. Van Wagenen, Chairman and Chief Executive Officer. Mr. Van Wagenen noted, "Pogo's fourth quarter drilling program was among our most ambitious, and the results are consistent with the success the company has been enjoying recently."

Pogo, as operator and 35% owner, has drilled the Main Pass Block 73 No. 5 "Garfield" exploratory well to 8,106 feet subsea, discovering 58 feet of measured oil and gas pay thickness in two zones. The Garfield well is located in 175 feet of water, and lies two miles from existing production facilities. A production liner is now being run, and this successful well will result in the immediate drilling of the "Odie" well in an adjacent fault block on the same lease. Initial production is expected from this newly discovered area by the third quarter of next year. Elsewhere in the Main Pass area, Pogo has plugged its unsuccessful fourth quarter exploration well drilled on Main Pass Block 134.

The Haynes No. 82 well in Pogo's approximately 70%-owned Zapata County Los Mogotes field has just logged 64 feet of natural gas pay and will be completed immediately. It appears very similar to the recently drilled and completed Haynes No. 78 well, which is now producing six million cubic feet per day (mmcf/d). Pogo has plans to drill 20 new Los Mogotes wells during 2003. Pogo also announced an exploration discovery in its 100%-owned South Hundido exploration area lying just north of Los Mogotes field. The Benevides No. 1 well logged 37 feet of natural gas pay in the Lobo Wilcox and is now being completed. This is just the first of six exploratory wells planned for the South Hundido area.

The first three of up to eight wells on the "D" platform area of Pogo's 46.3%-owned Benchamas field in the Gulf of Thailand have been drilled and logged. The company views the results of these first three wells as extremely encouraging for this entire region of the Benchamas field. The D-1 well logged 233 feet of pay (188 feet of oil and 45 feet of gas); the D-2 well logged 239 feet of pay (221 feet of oil and 18 feet of gas); and the D-4 well logged 267 feet of pay (157 feet of oil and 110 feet of gas). When fully developed, this new "D" platform is expected to be brought on stream by the middle of 2003.