HOUSTON, Dec. 30, 2010 /PRNewswire-FirstCall/ -- Plains
Exploration & Production Company (NYSE: PXP) ("PXP") announces
it has completed the divestment of its Gulf of Mexico shallow water shelf properties
to McMoRan Exploration Co. (NYSE: MMR). The transaction was
approved by McMoRan shareholders at a special meeting of the
stockholders held today. At closing and after preliminary closing
adjustments, PXP received approximately $86
million in cash, which includes $11
million in working capital adjustments, and 51 million
shares of McMoRan common stock in exchange for all of PXP's
interests in its Gulf of Mexico
leasehold located in less than 500 feet of water.
PXP has designated James C.
Flores, PXP's Chairman of the Board, President and Chief
Executive Officer, and John F.
Wombwell, Executive Vice President, General Counsel and
Secretary of PXP, to McMoRan's Board of Directors.
James C. Flores, Chairman of the
Board, President and Chief Executive Officer of PXP commented, "The
Gulf of Mexico shallow water
ultra-deep exploration program has been and continues to be a
successful value creation strategy, and we look forward to our
future participation as a significant McMoRan shareholder. The
unique operator/ownership structure approved today maximizes value
for both PXP and McMoRan shareholders from the ultra-deep program's
current discoveries and exploration potential, and through PXP's
ownership position, PXP shareholders maintain growth exposure to
this dynamic and emerging play without substantial capital
requirements."
Barclays Capital and Jefferies & Company acted as advisors
to PXP on the transaction.
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 statement. These include statements
regarding:
* oil and gas
prices,
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* results of drilling
activities,
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* development
schedules,
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* the impact of derivative
positions,
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* production expense
estimates,
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* cash flow
estimates,
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* future financial
performance,
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* capital and credit market
conditions,
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* planned capital expenditures,
and
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* other matters that are
discussed in PXP's filings with the SEC.
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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 as required by
law, we do not intend to update these forward-looking statements
and information.
SOURCE Plains Exploration & Production Company