HOUSTON, Sept. 8 /PRNewswire-FirstCall/ -- Plains Exploration & Production Company (NYSE: PXP) today announced that it has sold $400 million of 8.625% Senior Notes that will mature October 15, 2019. The notes were sold to the public at 98.335% of the face value to yield 8.875% to maturity. Net proceeds will be used for general corporate purposes, including to fund a portion of the payment of the remaining drilling carry under PXP's agreement with Chesapeake Energy Corporation.

Interest is payable April 15 and October 15 of each year. The first interest payment will be made on April 15, 2010, and will consist of interest from closing to that date. The offering is expected to close on September 11, 2009.

J.P. Morgan Securities Inc., Barclays Capital Inc., BMO Capital Markets Corp., Banc of America Securities LLC, and Morgan Stanley & Co. Incorporated are acting as book-running managers of the offering. The offering will be made only by means of a prospectus supplement and accompanying base prospectus, copies of which may be obtained from: J.P. Morgan Securities Inc., 270 Park Avenue, Floor 5, New York, NY 10017 (phone: 212-270-1477); Barclays Capital Inc., c/o Broadridge Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717 (phone: 1-888-603-5847 and e-mail: Barclaysprospectus@broadridge.com); BMO Capital Markets Corp., Attention: Elisabeth Albertus, 3 Times Square, 28th Floor, New York, NY 10036 (phone: 212-702-1804 and e-mail: elisabeth.albertus@bmo.com); Banc of America Securities LLC, Attention: Prospectus Department, One Bryant Park, New York, NY 10036 (phone: 800-294-1322 and e-mail: dg.prospectus_distribution@bofasecurities.com); and Morgan Stanley & Co. Incorporated, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014 (phone: 866-718-1649 and e-mail: prospectus@morganstanley.com).

An electronic copy of the prospectus supplement and accompanying base prospectus may also be obtained at no charge at the Securities and Exchange Commission's website at http://www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

PXP is an independent oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas in California, Texas, Louisiana and the Gulf of Mexico. PXP is headquartered in Houston, Texas.

ADDITIONAL INFORMATION & FORWARD-LOOKING STATEMENTS

This press release contains forward-looking information regarding PXP that is intended to be covered by the safe harbor "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements included in this press release that address activities, events or developments that PXP expects, believes or anticipates will or may occur in the future are forward-looking statements. These include statements regarding:

    --  completion of proposed offering,
    --  reserve and production estimates,
    --  oil and gas prices,
    --  the impact of derivative positions,
    --  production expense estimates,
    --  cash flow estimates,
    --  future financial performance,
    --  capital and credit market conditions,
    --  planned capital expenditures, and

    --  other matters that are discussed in PXP's filings with the SEC.

These statements are based on our current expectations and projections about future events and involve known and unknown risks, uncertainties, and other factors that may cause our actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements. Please refer to our filings with the SEC, including our Form 10-K, for the year ended December 31, 2008, and our Form 10-Q, for the quarterly period ended June 30, 2009, for a discussion of these risks.

All forward-looking statements in this report are made as of the date hereof, and you should not place undue reliance on these statements without also considering the risks and uncertainties associated with these statements and our business that are discussed in this report and our other filings with the SEC. Moreover, although we believe the expectations reflected in the forward-looking statements are based upon reasonable assumptions, we can give no assurance that we will attain these expectations or that any deviations will not be material. Except for any obligation to disclose material information under the Federal securities laws, we do not intend to update these forward-looking statements and information.

SOURCE Plains Exploration & Production Company