HOUSTON, April 5 /PRNewswire-FirstCall/ -- Pogo Producing Company ("Pogo") announced today that it has signed a Production Sharing Contract for Block 124 offshore Vietnam in the Phu Khanh Basin. Pogo will serve as operator of the block and will have a 100% working interest. Vietnam Oil and Gas Corporation ("PetroVietnam") reserves the right to elect to participate in any oil and gas discovery with up to a 20% working interest upon declaration of commerciality.
Block 124 covers approximately 1,480,000 acres and abuts the eastern coastline of Vietnam, northeast of Ho Chi Minh City. The exploratory phase of the contract is seven years, with a firm minimum work program during the first three years that includes the acquisition of new 3-D seismic data and the drilling of two exploratory wells. The exploratory phase is followed by two optional two-year periods during which a well must be drilled in order to retain the acreage. Pogo has acted promptly, with the vital cooperation of PetroVietnam, to begin acquiring some 850 square kilometers (209,000 acres) of 3-D seismic data as early as the third quarter of this year.
Pogo's Chairman and Chief Executive Officer, Paul G. Van Wagenen, said, "Pogo's preliminary analysis of prospectivity, utilizing existing 2-D seismic data, indicates the presence of several promising leads in Miocene and Paleozoic age rocks. We are pleased to be able to accelerate our 3-D seismic data acquisition program in order to explore this promising and high-potential block at the earliest possible time."
Pogo Producing Company explores for, develops and produces oil and natural gas. Headquartered in Houston, Pogo owns approximately 3,885,000 gross leasehold acres in major oil and gas provinces in North America, 1,044,000 acres in New Zealand and 1,480,000 acres in Vietnam. Pogo common stock is listed on the New York Stock Exchange under the symbol "PPP."
Except for the historical and present factual information contained herein, the matters set forth in this release include statements of management's current expectations as to efficiencies, cost savings, market profile and financial strength, and the competitive ability and position of the company. Statements identified by words such as "expects," "projects," "plans," "believes," "estimates," and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the possibility that the anticipated benefits from Pogo's operations cannot be fully realized, the possibility that commodity prices, costs or difficulties related to the conduct of its business will be greater or lesser than expected, and the impact of competition and other risk factors relating to our industry will be greater than expected, all as detailed from time to time in Pogo's reports filed with the Securities and Exchange Commission. Pogo disclaims any responsibility to update these forward-looking statements.
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