Offshore staff

(US, GoM) - Plains Exploration & Production Co. (PXP) has entered into a definitive agreement to acquire Stone Energy Corp. in a stock-for-stock transaction valued at approximately $1.46 billion.

Upon completion of the acquisition, PXP will have a proved reserve base of approximately 500 MMboe. At year-end 2005, Stone reported 99 MMboe of proven reserves located in the Gulf Coast basin and the Rocky Mountain region.

The combined company is expected to have significant operations in California, the Rocky Mountains, Texas and the Gulf of Mexico; total net developed acres of 207,643 and 992,822 net undeveloped acres; a reserve-to-production ratio of 12-14 years; 80% oil reserves; and 70% to 75% oil production.

The Board of Directors of both companies have approved the merger agreement, which is expected to close in 3Q 2006.

04/24/06