Profile: Plains Exploration & Production Company (PXP)

Plains Exploration & Production Company (PXP) is an independent oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas properties primarily in the United States. The Company owns oil and gas properties with principal operations in Onshore California; Offshore California; the Gulf of Mexico; the Gulf Coast Region; the Mid-Continent Region, and the Rocky Mountains. As of December 31, 2008, the Company had estimated proved reserves of 292.1 million barrels of oil equivalent, of which 61% was comprised of oil and 72% was proved developed. During the three-year period ended December 31, 2008, PXP participated in 123 exploratory wells, of which 102 were successful, and 660 development wells, 652 of which were successful. The Company also has an interest in an exploration prospect offshore Vietnam.

In July 2008, the Company acquired from a subsidiary of Chesapeake Energy Corporation (Chesapeake) a 20% interest in Chesapeake’s Haynesville Shale leasehold. In April 2008, it completed the acquisition of oil and gas producing properties in South Texas from a private company. In December 2008, the Company closed the sale of certain oil and gas properties to a subsidiary of Occidental Petroleum Corporation (Oxy). In February 2008, it also closed the sale to XTO Energy Inc. (XTO) of certain oil and gas properties located in the San Juan Basin in New Mexico and in the Barnett Shale in Texas.

Onshore California

PXP holds a 100% working interest in the majority of its Los Angeles Basin properties, including Inglewood, Las Cienegas, Montebello, Packard and San Vicente. The Los Angeles Basin properties are characterized by light crude, well depths ranging from 2,000 feet to over 10,000 feet and include both primary production and waterfloods. Its San Joaquin Basin properties are primarily in the Cymric, Midway Sunset and South Belridge Fields. These are long-lived fields that have heavier oil (12 to 16 degree API gravity) and shallow wells (generally less than 2,000 feet) that require enhanced oil recovery techniques, including steam injection, and produce with high water cuts. The Company holds 100% working interest (94% net revenue interest) in the Arroyo Grande Field located in San Luis Obispo County, California. This is a long-lived field that has heavier oil, wells depths averaging 1,700 feet and requires continuous steam injection.

Offshore California

The Company holds a 69.3% working interest (58% net revenue interest) in the Point Arguello Unit and the various partnerships owning the related transportation, processing and marketing infrastructure. PXP holds a 100% working interest (83% net revenue interest) in the Pt. Pedernales Field, which includes one platform, utilized to exploit the Federal OCS Monterey Reservoir by extended reach directional wells, and support facilities, which lie within the onshore Lompoc Field.

Gulf of Mexico

In November 2006, the Company entered into an exploration agreement with McMoRan Exploration Co. During the year ended December 31, 2008, it participated in 10 wells of which five were successful, one was unsuccessful and four were in progress at year end, located in the Flatrock, Louisiana State Lease 340, South Marsh Island Block 251 and South Timbalier Block 168 areas. At December 31, 2008, a well drilled on South Timbalier Block 168, where it owns a 35% working interest.

Gulf Coast Region

In July 2008, the Company acquired a 20% interest in Chesapeake’s Haynesville Shale leasehold. The Haynesville Shale is characterized by gas production from the Jurassic-aged Haynesville shale formation, and typical well depth is 10,500 feet. The area is being developed with approximately 4,000 foot horizontal wells at a measured total depth of 16,000 feet. The Company has rights to approximately 685,000 gross acres (111,000 net acres). As of December 31, 2008 Chesapeake was operating 20 rigs. The Company own interests in oil and gas properties on 94,448 gross acres (62,846 net acres) with 321 square miles of 3-D seismic located in South Texas, including 52,648 gross acres (29,453 net acres) that it acquired in April 2008 from a private company. Development activities are primarily for gas reserves concentrated in the Los Mogotes, Lopez Ranch and Mills Bennett fields. The fields produce from the Eocene Yegua and Wilcox formations, found at depths generally ranging from 7,000 to 14,000 feet.

The Company holds 100% working interest in approximately 72,233 gross acres, including the Oligocene, Frio and Vicksburg reservoirs in the Big Mac prospect area. It owns over 275 square miles of three dimension (3D) seismic data, and interpretation of that data has yielded a number of exploratory prospects. The Company holds approximately 63,186 gross acres, including the Cretaceous Woodbine and Austin Chalk Formations. It owns approximately 125 square miles of new, proprietary 3D seismic data, and interpretation of that data has yielded a number of exploratory prospects, which are generally 100% owned and operated by the Company. The Company has 39,027 gross acres in central South Louisiana on which to explore for Oligocene and deeper Eocene targets. It owns over 165 square miles of new 3D seismic data in central South Louisiana and hold 100% working interest.

Mid Continent Region

The Company interests in oil and gas properties on approximately 532,292 gross leasehold acres with 715 square miles of 3D seismic located in Texas and Oklahoma. Development activities are concentrated in the Courson Ranch area located primarily in Roberts and Hutchinson Counties in Texas, as well as in the Wheeler and Marvin Lake Prospects in Wheeler and Hemphill Counties in Texas.

Rocky Mountains

The Company owns a 14% working interest in the Madden Unit and Lost Cabin Gas Plant located in central Wyoming. The Madden Unit is a federal unit operated by a third party and consists of approximately 64,104 gross acres in the Wind River Basin. Production from the Madden Unit is typically found at depths ranging from 5,500 to 25,000 feet. Some of the gas produced from the Madden Unit requires processing at the Lost Cabin Gas Plant to remove high concentrations of carbon dioxide and sulfur. In November 2007, the Company acquired Pogo, which had entered into a production sharing contract with PetroVietnam, the state oil company of Vietnam. Its interest in Block 124 covers approximately 1,480,000 gross acres offshore central Vietnam.