Pogo is Awarded Three Offshore NZ License Blocks

Pogo is Awarded Three Offshore New Zealand License Blocks

HOUSTON, Texas, Feb. 7 /PRNewswire-FirstCall-AsiaNet/ --

Pogo Producing Company (NYSE: PPP) announced today that the New Zealand Ministry of Economic Development has awarded Pogo an exploration license on each of the three blocks it sought in New Zealand's September bidding round. The three new exploration licenses, totaling 1,014,000 acres, are identified by New Zealand authorities as blocks "E", "G" and "I" and are located in the Taranaki basin, offshore from the west coast of New Zealand's North Island. Pogo's three successful bids are included among 23 total bids that were submitted on 14 blocks in this bidding round according to New Zealand authorities.

Pogo's 100%-owned licenses provide for five-year initial exploration terms, subject to extensions. Pogo's bid includes a plan to acquire at least 1,000 square kilometers of new 3-D seismic within the first two years across the three licenses. Thereafter, based on the results of that seismic analysis by Pogo's explorationists, drilling decisions will be made.

Paul G. Van Wagenen, Chairman and Chief Executive Officer of Pogo, said, "We are extremely pleased to be awarded the right to explore in this new and very prospective area. We began our analysis of this particular basin several years ago. The licenses awarded today mark the culmination of that phase. Now, we are anxious to begin the exploration stage of this process."

Mr. Van Wagenen also said, "This New Zealand bid round coincides with the return of much higher prices for newly discovered New Zealand natural gas, and the continuing availability of world oil prices. Moreover, the license terms offer relatively low royalties and taxes, which are also very appealing to us. Most importantly, this acreage, in water depths generally less than 100 meters, lies within a proven basin in a country with a very favorable economic and political climate." Pogo Producing Company explores for, develops and produces oil and natural gas. Headquartered in Houston, Pogo owns interests in 78 federal and state Gulf of Mexico lease blocks offshore from Louisiana and Texas. Pogo also owns approximately 685,000 gross leasehold acres in major oil and gas provinces in the United States, approximately 687,000 gross acres in the Gulf of Thailand, approximately 764,000 gross acres in Hungary, approximately 81,000 gross acres in the Denmark North Sea and 1,014,000 acres in New Zealand. Pogo common stock is listed on the New York Stock Exchange and the Pacific Exchange under the symbol "PPP".

Except for the historical and present factual information contained herein, the matters set forth in this release include statements of management's current expectations as to efficiencies, cost savings, market profile and financial strength, and the competitive ability and position of the company. Statements identified by words such as "expects," "projects," "plans," "believes," "estimates," and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the possibility that the anticipated benefits from Pogo's operations cannot be fully realized, the possibility that commodity prices, costs or difficulties related to the conduct of its business will be greater or lesser than expected, and the impact of competition and other risk factors relating to our industry will be greater than expected, all as detailed from time to time in Pogo's reports filed with the Securities and Exchange Commission. Pogo disclaims any responsibility to update these forward-looking statements.

SOURCE: Pogo Producing Company

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