2008-10-21-2008-03-03-2008-04-30

Bought producing properties on 28,024 net acres in TX.

Plains Exploration & Production Co., Houston, (NYSE: PXP) has closed its acquisition of producing properties in South Texas from privately held Samson Lone Star LLC and PYR Energy Corp. for $288 million. The assets include 52,648 gross acres (28,024 net). Final reserves and production were not reported. Plains funded the majority of the purchase using a tax-deferred like-kind exchange with proceeds from the sale of a 50% interest in properties in the Permian Basin in West Texas and New Mexico and the Piceance Basin in Colorado to Occidental Petroleum Corp., Los Angeles, (NYSE: OXY) for $1.55 billion. The deal was announced for $335 million to include 67,929 gross acres (34,509 net) with proved reserves of 106 billion cubic feet equivalent, an additional 70 billion of unproved potential, and net production of approximately 33 million cubic feet equivalent per day. The final deal was reduced by the exercise of third-party preferential rights and closing adjustments. Plains president and chief executive James C. Flores says, "Due to the company's superior financial position from high cash flow due to record commodity prices, we are opportunistically acquiring excellent production/development assets in South Texas to expand this strong operating area for PXP." The company's per-share growth strategy remains focused on acquiring significant and growing production/development assets, exploration drilling and repurchasing shares, he adds. Jefferies Randall & Dewey was advisor. The effective date is Jan. 1. Plains operates in California, the Rockies, Gulf Coast, Texas Panhandle, South Texas and the Permian Basin.