Pogo Producing Co., Houston, (NYSE: PPP) plans to sell 50% of all of its Gulf of Mexico oil and gas leasehold interests to Mitsui & Co. Ltd., Mitsui & Co. (U.S.A.) Inc. and Mitsui Oil Exploration Co. Ltd. for $500 million in cash, to fund Pogo's acquisition of privately held Latigo Petroleum Inc. Closing is expected this month. (For more on the Latigo deal, see "Company Briefs," Oil and Gas Investor, May 2006.) Pogo will retain the remaining 50% interest in each of its present Gulf of Mexico properties, which will then represent slightly more than 6% of Pogo's total proven reserves. The sale is equivalent to net production capacity of 8,000 bbl. of oil and 24 million cu. ft. of gas per day, and approximately 143 billion cu. ft. equivalent of net estimated proven reserves. Pogo will work with Mitsui on a non-exclusive basis to seek more joint-venture opportunities in various basins across the United States and Canada. Paul G. Van Wagenen, Pogo chairman and chief executive, says, "Today's announcement marks a milestone in enhancing investment value and minimizing risk for Pogo's shareholders. Pogo is a determined and disciplined asset buyer, and we look forward to working closely with Mitsui to realize continued growth in North America." Schlumberger Ltd., New York, (NYSE: SLB) has completed the acquisition of the 30% interest in the seismic joint venture WesternGeco from its partner Baker Hughes Inc., Houston, (NYSE: BHI; EBS) for $2.4 billion in cash.
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