PXP Expands Project Inventory in GOM

Plains Exploration & Production announced today it and its partners are apparent high bidders on 44 blocks on which it bid at the U.S. Minerals Management Service (MMS) Central Gulf of Mexico Oil and Gas Lease Sale 213, held in New Orleans last week. PXP's apparent high bids include interests in 16 shelf blocks and 28 deepwater blocks covering 16 prospects. The Company's working interests on the blocks range from 25%-100% with a net exposure of approximately $34 million. PXP expects the leases to be awarded over the next several months subject to MMS review and approval.

In the South Timbalier, Ship Shoal, Eugene Island, Vermilion and South Marsh Island Areas of Central Gulf of Mexico, PXP has a right to participate in 16 blocks in which McMoRan Exploration was the apparent high bidder. The blocks expand PXP's project inventory in the area around its Flatrock, Davy Jones and Blackbeard discoveries.

PXP submitted joint bids with Anadarko Petroleum Corporation and Mariner Energy, its partners at the Lucius discovery on Keathley Canyon Block 875 in the Keathley Canyon and Walker Ridge Areas of Central Gulf of Mexico. PXP partnered with both companies on 23 blocks and with Anadarko on 4 additional blocks. Additionally, PXP was the high bidder on 1 block. The apparent high bids include several drill-ready prospects, mature leads and potential development blocks which target subsalt Neogene and Paleogene reservoirs.