EP EL Paso Corp. (Holding Co.)

HOUSTON, Jan. 16 /PRNewswire-FirstCall/ -- El Paso Corporation (NYSE:EP) today announced that its wholly owned subsidiary, El Paso Exploration & Production Company, has entered into three purchase and sale agreements for the sale of non-core properties in its Onshore and Texas Gulf Coast regions. The aggregate sales price for the properties is $517 million, subject to customary adjustments. As of December 31, 2007, the company had an estimated 191 billion cubic feet equivalent (Bcfe) of proved reserves associated with the properties, with roughly half coming from each region. The December 2007 average production for Texas Gulf Coast properties was 39 MMcfe/D, while the Onshore properties produced 17 MMcfe/D. "We are pleased to complete another important step in the high grading of our portfolio," said Brent Smolik, president of El Paso Exploration & Production Company. "We expect these sales, together with our 2007 acquisitions, to meaningfully improve the efficiency of our operations, the depth of our inventory, and our future growth potential. They will create greater geographic focus within our Onshore and Texas Gulf Coast operating regions and remove a number of relatively high-cost properties." Closing of each of the transactions is subject to customary conditions and is expected to occur during the first quarter 2008. Proceeds will be used to repay debt incurred with the acquisition of Peoples Energy Production Company in September 2007. El Paso is also negotiating with prospective bidders for the sale of selected non-core Gulf of Mexico properties. Jefferies Randall & Dewey acted as financial advisor to El Paso. El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest interstate natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit http://www.elpaso.com/. Cautionary Statement Regarding Forward-Looking Statements (UPDATE) This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding our plans for 2007 and our expected financial and operating results for 2007, as well as other statements regarding matters other than historical fact. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including, without limitation, the receipt of any necessary regulatory approvals and third party consents, the inability to close the transactions due to the failure to satisfy any applicable conditions precedent; competition; and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise. DATASOURCE: El Paso Corporation CONTACT: investors, Bruce L. Connery, Vice President of El Paso Corporation, +1-713-420-5855, or media, Richard Wheatley, Manager, +1-713-420-6828, cell, +1-832-643-8929, both of El Paso Corporation Web site: http://www.elpaso.com/

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