PXP Announces Pricing Of $400 Million of Senior Notes

HOUSTON, May 20 /PRNewswire-FirstCall/ -- Plains Exploration & Production
Company (NYSE: PXP) today announced that it has sold $400 million of 7.625%
Senior Notes that will mature June 1, 2018. The notes were sold to the public
at par. Net proceeds will be used to repay borrowings under PXP's revolving
credit facility.
Interest is payable June 1 and December 1 of each year. The first interest
payment will be made on December 1, 2008, and will consist of interest from
closing to that date. The offering is expected to close on May 23, 2008.
The offering was underwritten by J.P. Morgan Securities Inc., Banc of
America Securities LLC, Lehman Brothers Inc. and Merrill Lynch & Co., who
acted as joint book-running managers for the offering. The offering was made
only by means of a prospectus and related prospectus supplement, copies of
which may be obtained from J. P. Morgan Securities Inc., 270 Park Ave., 8th
Floor, Attention: Syndicate Desk, New York, NY 10017, telephone: 800-245-8812;
Banc of America Securities LLC, telephone: 800-294-1322, email:
dg.prospectus_distribution@bofasecurities.com; Lehman Brothers Inc. c/o
Broadridge Integrated Distribution Services, 1155 Long Island Avenue,
Edgewood, NY 11717, fax: 631-254-7140, email: qiana.smith@broadridge.com; or
Merrill Lynch & Co., 4 World Financial Center, 4th Floor, Attention:
Prospectus Department, New York, NY 10080, telephone: 212-449-1000. An
electronic copy of the prospectus and prospectus supplement is available from
the Securities and Exchange Commission's website at http://www.sec.gov.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any state.
PXP is an independent oil and gas company primarily engaged in the
activities of acquiring, developing, exploring and producing oil and gas in
its core areas of operation: California, Rockies, Gulf Coast, Gulf of Mexico,
Texas Panhandle, South Texas and the Permian Basin of the United States. PXP
is headquartered in Houston, Texas.
ADDITIONAL INFORMATION & FORWARD LOOKING STATEMENTS
This press release contains forward-looking information regarding PXP that
is intended to be covered by the safe harbor "forward-looking statements"
provided by the Private Securities Litigation Reform Act of 1995. All
statements included in this press release that address activities, events or
developments that PXP expects, believes or anticipates will or may occur in
the future are forward-looking statements. These include statements regarding:
* reserve and production estimates,
* oil and gas prices,
* the impact of derivative positions,
* production expense estimates,
* cash flow estimates,
* future financial performance,
* planned capital expenditures, and
* other matters that are discussed in PXP's filings with the SEC.

These statements are based on our current expectations and projections
about future events and involve known and unknown risks, uncertainties, and
other factors that may cause our actual results and performance to be
materially different from any future results or performance expressed or
implied by these forward-looking statements. Please refer to our filings with
the SEC, including our Form 10-K for the year ended December 31, 2007, for a
discussion of these risks.
All forward-looking statements in this report are made as of the date
hereof, and you should not place undue reliance on these statements without
also considering the risks and uncertainties associated with these statements
and our business that are discussed in this report and our other filings with
the SEC. Moreover, although we believe the expectations reflected in the
forward-looking statements are based upon reasonable assumptions, we can give
no assurance that we will attain these expectations or that any deviations
will not be material. Except for any obligation to disclose material
information under the Federal securities laws, we do not intend to update
these forward-looking statements and information.
SOURCE Plains Exploration & Production Company

Hance Myers, Vice President Investor Relations of Plains Exploration &
Production Company, +1-713-579-6291, or 1-800-934-6083