Pogo Producing Co., Houston, (NYSE: PPP) will sell an undivided 50% of all its Gulf of Mexico oil and gas leasehold interests to Mitsui & Co. Ltd., Tokyo, (Nasdaq: MITSY) and its subsidiaries Mitsui & Co. (U.S.A.) Inc. and Mitsui Oil Exploration Co. Ltd. for $500 million in cash. The transaction is expected to close in June. Pogo will retain the remaining 50% interest in each of its Gulf properties, which will then represent more than 6% of its total proven reserve and retains the possibility to participate to some extent in any significant future discovery made on those offshore blocks. This sale is approximately equivalent to net production capacity, without any reduction due to continuing hurricane damage-related curtailments, of 8,000 barrels per day of oil and 24 million cubic feet of gas per day and approximately 143 billion cubic feet equivalent, or 24 million barrels of oil equivalent, of net estimated proven oil and gas reserves. Also, Pogo will work with Mitsui to acquire interests in assets in various North American basins.
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