PXP Updates on First Quarter E&P, 2009 Financial Guidance

PXP expects first quarter 2009 production sales volumes to be just above the mid-point of the annual production sales volume guidance range of 78 to 82 thousand barrels of oil equivalent per day. Additionally, PXP reiterates its 2009 full year operating and financial guidance issued February 25, 2009.

The Company does not expect ceiling test or goodwill impairments in the first quarter, and plans to release 2009 first quarter operating and financial results on May 7, 2009.

Exploration Updates

The White Shark exploration prospect, operated by PXP and located in the Phu Khanh Basin Block 124 offshore Vietnam, is currently drilling below 7,100 feet towards a proposed total depth of approximately 7,380 feet. Initial log results indicate approximately 70 net feet of pay in two oil bearing sections. Final drilling results are expected by the end of the second quarter. PXP holds a 100% working interest.

The Ammazzo exploration prospect, operated by McMoRan and located on South Marsh Island Block 251, is currently drilling below 21,600 feet towards a proposed total depth of 24,500 feet. PXP holds a 28.1% working interest.

The Ocean Monarch semisubmersible drilling rig is on location and initial operations are underway for further drilling at the Friesian #2 discovery well in the Gulf of Mexico. As previously announced, PXP, as operator, and its partner decided to deepen the Friesian #2 discovery well an additional 3,500 feet to 32,500 feet true vertical depth to test the prolific main field equivalent sands such as the M15, M18, M21A and M21B at Tahiti. Existing data show strong correlation, both geologic and pressure, from the initial Miocene field pay sands at Tahiti to the drilled portion of our Friesian #2 well.

PXP is an independent oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas in California, Texas, Louisiana and the Gulf of Mexico. PXP is headquartered in Houston, Texas.

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