Pogo Producing Company Enters Into Agreement to Sell Northrock Resources for $2.0 Billion

Pogo Enters Into Agreement to Sell Northrock Resources for $2.0 Billion

Pogo Producing Company (NYSE: PPP) (”Pogo”) today announced that its Board of Directors has approved a definitive agreement under which Pogo will sell all of the outstanding stock of its wholly-owned subsidiary, Northrock Resources Ltd. (”Northrock”), for $2.0 billion in cash to Abu Dhabi National Energy Company PJSC (”TAQA”).

The sale of Northrock Resources includes properties located largely in Alberta, Saskatchewan and the Northwest Territories. Northrock properties currently produce approximately 29,000 barrels of oil equivalent per day (boepd) and contain approximately 706 billion cubic feet equivalent (bcfe) of estimated proven reserves as of December 31, 2006. About 51% of the production and 55% of the Northrock reserves are oil. This sale is expected to close during the third quarter of 2007, subject to customary closing conditions and regulatory approvals.

Paul G. Van Wagenen, Chairman and Chief Executive Officer of Pogo, said, “Today’s announcement reflects another very significant step in our strategic alternatives process to unlock unrealized value from Pogo’s asset base. We are pleased to have entered into this transaction. Combined with our previously announced sales of various non-core assets, mostly in the onshore gulf coast area, as well as Pogo’s strategic exit from the waters of the Gulf of Mexico, today’s announcement should deliver meaningful incremental value to Pogo’s shareholders. After closing of this transaction, Pogo will have sold approximately 900 bcfe of proven reserves for about $2.6 billion.”