Pogo Producing Co., Houston, (NYSE: PPP) has closed the acquisition of Northrock Resources Ltd., a wholly owned Canadian subsidiary of Unocal Corp., for US$1.7 billion in cash. The acquisition will increase Pogo's total proven oil and gas reserves 45%, from 1,437 billion cubic feet of gas equivalent to 2,081 billion; increase Pogo's worldwide net leasehold acreage about 82%, from approximately 1.73 million net acres to approximately 3.15 million; add more than 900 identified drilling opportunities to Pogo's inventory; and extend Pogo's reserve life to 9.3 years. Pogo has acquired 644 billion cubic feet of estimated proved reserves on approximately 300,000 net acres in addition to approximately 1.1 million net acres of undeveloped leasehold. Pogo's acquisition cost is approximately US$2.48 per thousand cubic feet equivalent. "We are pleased to announce the closing of this important acquisition, which will provide Pogo with greater proven reserves and a substantial prospective exploration acreage position," says Paul G. Van Wagenen, chairman and chief executive of Pogo. "The Northrock acquisition is a major component of our 2005 strategic plan to grow our asset base in North America in order to deliver greater value to shareholders for years to come." In addition, this acquisition gives Pogo an approximate 50% working interest in approximately 2.7 million gross acres and exploration and development opportunities in Saskatchewan and Alberta with key exploration plays in Canada's Northwest Territories, British Columbia and the Alberta Foothills.
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