Pogo Announces Two Discoveries

Pogo Producing Company announced that its Main Pass 61 No. 2 exploratory well has been drilled to a total depth of 11,424 feet, and discovered 91 feet of oil pay. The well was drilled by Pride International's jackup, Pride California. Pogo has a 100 percent working interest in the well and in Main Pass Blocks 61/62 field. The Main Pass 61 No. 2 exploratory well targeted a prospect on a separate fault-block located approximately one and a half miles to the southeast of the No. 1 discovery well which was drilled late last year. An upcoming exploratory well will test another structural closure some three miles to the southwest of the No. 2 well, and will be an important part of a continuing exploratory and development drilling program this year on Main Pass Blocks 61 and 62. A four-pile, twelve-slot jacket is under construction and should be installed early in the second quarter of 2001 on the location of the Main Pass 61 No. 1 discovery well. An oil production facility with a maximum capacity of 20,000 barrels per day will be installed in November 2001 and will serve as the production platform for both blocks in this new field. First production is expected by year-end 2001.

Pogo also reports that its Ewing Bank 871 No. 4 well has penetrated 195 feet of gross oil column in an interval below 10,000 feet. This well was drilled by Diamond Offshore's semisubmersible, Ocean Concord. A second oil-bearing zone encountered below 11,000 feet is currently undergoing further evaluation. The No. 4 well will be linked with the recently drilled Ewing Bank 871 No. 1 and No. 3 wells, and all of the wells will be slated to produce from a subsea production facility and piped to a nearby platform. Pogo has a 50 percent working interest in the new Ewing Bank Blocks 871/872 field. Walter Oil & Gas Corporation is operator with 40% working interest and Continental Land & Fur Co., Inc. has 10% working interest. First production from this new field is expected before year-end 2001.