HOUSTON, March 24, 2011 /PRNewswire/ -- Plains Exploration
& Production Company (NYSE: PXP) ("PXP") announces today it
continues to evaluate alternatives to separate its deepwater and
onshore businesses, which include separately capitalizing its
deepwater business through a joint venture or outside capital and
then either spinning-off or divesting these assets.
James C. Flores, Chairman,
President and CEO of PXP commented, "The planned separation of our
Gulf of Mexico and onshore
businesses is aimed at optimizing the value of PXP's assets, both
onshore and offshore. However, to-date, the deepwater separation
process reflects a discounted value due to the current regulatory
uncertainties, permit delays, and reduced activity for Gulf of Mexico exploration and development,
rather than the underlying long-term value of this oil-weighted
asset, especially in this strong energy commodity market.
"We believe it prudent to allow time for the regulatory
uncertainties to abate and to complete the Lucius well test
operations before proceeding. Our Lucius operator, Anadarko
Petroleum Corporation (NYSE: APC), recently received approval to
conduct well test operations beginning late March 2011. The flow test is a key milestone to
possible project sanctioning in 2011, which results in significant
discovered resources becoming proved reserves. Prior to separation,
potential additional drilling could occur on the current leasehold
on 50,000 acres covering 10 OCS blocks to further de-risk the
Lucius-Phobos complex."
PXP anticipates capital exposure for these properties in 2011 of
approximately $50-$60 million net to
PXP with the easing of Gulf of
Mexico activity curtailments.
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 and Louisiana. 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:
* completion and results of the well test operations,
* value and completion of the separation of our deepwater
assets,
*reserve and production estimates,
* oil and gas prices,
* 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 press release 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 press release 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