Plains Exploration & Production Co.

Plains Exploration & Production Co. has retained Meagher Oil & Gas Properties Inc. to sell four packages in Texas, North Dakota and Kansas. The first package involves 167,183 contiguous gross acres (149,971 net) in Hutchinson and Roberts counties, Texas (80% net revenue interest) with most leases extended in first-quarter 2011. Current assets include two operated Granite Wash wells. Current production averages 194,000 cubic feet and three barrels of oil per day. Upside includes up to 80 Granite Wash locations and updip locations on the high-porosity Hunton structure. The second package involves 39,000 gross acres (20,800 net) in Polk and Tyler Counties, Texas, for all rights to the base of the Austin chalk. Four producing wellbores will be retained by the seller. Upside includes 18 Austin chalk drilling locations and 14,300 undeveloped acres. The third package involves 25,644 gross acres (14,298 net; 1,280 net acres held by production) in Williams County, North Dakota, prospective for Bakken shale. Average net revenue interest is 79.95%. Current production averages 25 barrels of oil per day from two active producing wells in one unit with 100% working interest and operations. Average net cash flow for 12 months ending July 2009 was $10,273 per month. Upside includes additional potential in the Sanish and Three Forks formations. The fourth package involves 31,235 gross acres (29,732 acres) in Hamilton County, Kansas, for rights below the base of Chase formation. Average net revenue interest is 84.7%. The acreage is held by shallow production. Additional targets include Council Grove, Lansing-Kansas City, Marmaton, Lower Morrow and Mississippian formations. The bid due date is Dec. 10. The effective date is Nov. 1. Closing is expected by Dec. 29. Contact Jacque Semple, 918-481-5900, ext. 221.