PXP Announces Significant Gulf of Mexico Acquisition, 59.5 Thousand Barrels of Oil Equivalent per Day of Current Net Production

Plains Exploration & Production Company

today announces it has entered into a definitive agreement to acquire from BP Exploration & Production Inc. and BP America Production Company

all of their interests in certain deepwater Gulf of Mexico oil and gas properties for $5.55 billion. The properties include the BP-Operated Marlin, Dorado and King Fields (collectively the Marlin Hub, 100% working interest), BP-Operated Horn Mountain Field (working interest 100%), BP-Operated Holstein Field (working interest 50%), BP non-operated Diana-Hoover Field (33.33% working interest, operated by ExxonMobil) and BP non-operated Ram Powell Field (31% working interest, operated by Shell Offshore Inc.). At the end of July 2012, these properties were producing an estimated 59,500 barrels of oil equivalent net per day of which nearly 84% is oil and natural gas liquids with an average American Petroleum Institute gravity of 34 degrees. Significant upside production potential exists in the currently producing reservoirs through numerous low risk, high-margin drilling/recompletion and well workover opportunities. The transaction is subject to preferential rights, title and environmental due diligence and other customary closing conditions. This transaction is effective October 1, 2012 and is expected to close by