PXP Announces Pricing of $300 Million of Senior Notes Due 2020

HOUSTON, March 24 /PRNewswire-FirstCall/ -- Plains Exploration & Production Company (NYSE: PXP) today announced that it has priced an underwritten public offering of $300 million of 7 5/8% Senior Notes due 2020. The notes are being sold to the public at par. PXP intends to use the net proceeds of the offering to repay indebtedness under its senior revolving credit facility and for general corporate purposes.

Interest is payable on April 1 and October 1 of each year. The first interest payment will be made on October 1, 2010, and will consist of interest from closing to that date. The offering is expected to close on March 29, 2010, subject to the satisfaction of customary closing conditions.

J.P. Morgan Securities Inc., Barclays Capital Inc., BMO Capital Markets Corp., Banc of America Securities LLC, Citi and Wells Fargo Securities, LLC are acting as book-running managers of the offering. The offering will be made only by means of a prospectus supplement and accompanying base prospectus, copies of which may be obtained from: J.P. Morgan Securities Inc., 270 Park Avenue, Floor 5, New York, NY 10017 (phone: 212-270-1477); Barclays Capital Inc., c/o Broadridge Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717 (phone: 888-603-5847 and e-mail: [email protected]); BMO Capital Markets Corp., Attention: Gokul Dhingra, 3 Times Square, 28th Floor, New York, NY 10036 (phone: 212-702-1185 and e-mail: [email protected]); Banc of America Securities LLC, Attention: Prospectus Department, One Bryant Park, New York, NY 10036 (phone: 800-294-1322 and e-mail: [email protected]); Citi, Attention: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220 (phone: 800-831-9146 and e-mail: [email protected]); and Wells Fargo Securities, LLC, Attention: High Yield Syndicate, 301 S. College Street, 6th Floor, Charlotte, NC 28202 (phone: 704-715-7035).

When filed, an electronic copy of the final prospectus supplement and accompanying base prospectus may also be obtained at no charge at the Securities and Exchange Commission's website at http://www.sec.gov.

This press release does 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 or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

PXP is an independent oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas in California, Texas, Louisiana and the Gulf of Mexico. 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:

* completion of proposed offering,

* reserve and production estimates,

* oil and gas prices,

* the impact of derivative positions,

* production expense estimates,

* cash flow estimates,

* future financial performance,

* capital and credit market conditions,

* 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 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

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