Pogo discovers new reserves at "old" offshore Louisiana block; production to start early in 1997.

HOUSTON--(BUSINESS WIRE)--Oct. 24, 1996--Pogo Producing Co. (NYSE:"PPP") has discovered additional hydrocarbons on its East Cameron Block 334 field offshore Louisiana, it was announced today by Pogo's Chairman and Chief Executive, Paul G. Van Wagenen.

Pogo, as operator, with 58% working

interest, successfully drilled the No. 7 exploration well to a total depth of 17,975 feet subsea. The well encountered more than 300 net feet of gas and condensate sands below 15,000 feet. The No. 9 delineation well was then drilled, logged and cased after successfully encountering over 300 net feet of gas and condensate sands. Both wells have been temporarily suspended while the "E" platform jacket is being installed. Production from the "E" platform is expected to start in the first quarter of 1997.

Van Wagenen said, "This is a fine old block that has been on production for over 19 years. We are determined to continue adding new reserves by drilling exploratory wells on untested portions of such properties. Advanced geological and geophysical analysis led to this success at East Cameron 334".

Another new field discovery was also made at East Cameron Block 334. The No. 6 well has been logged and cased after discovering 30 net feet of natural gas pay at 6,200 feet. Pogo, as operator, has 70% working interest in this discovery and the "D" platform through which this well will be produced. The "D" platform initially began production in August, 1996 and is already producing 15 million cubic feet of gas per day from a zone at 10,000 feet. The No. 6 well is scheduled to start production in mid-November, 1996.

Exxon Company, USA has a 42% working interest ownership in the "E" platform wells and 30% interest in the "D" platform wells.

Pogo is also participating in the drilling of another exploration well on the East Cameron Block 334 field. The No. 10 well is currently drilling below 13,000 feet and is scheduled to reach a total depth of 17,400 feet before year's end. Pogo has 42% working interest ownership in that well. Additional exploration and development wells at East Cameron Block 334 field are "definitely being considered for drilling in 1997," Van Wagenen noted.

Pogo Producing Co. explores for, develops and produces oil and natural gas. Headquartered in Houston, Pogo owns interests in 84 (86 if and when two additional new OCS blocks are awarded) federal and state lease block offshore Louisiana and Texas in the Gulf of Mexico. Pogo also owns approximately 151,000 gross leasehold acres in major oil and gas provinces onshore in the United States and approximately 1,300,000 undeveloped gross acres in the Kingdom of Thailand, approximately 68,000 acres of which is being developed as the Tantawan Production License Area. Pogo is listed on the New York and Pacific Stock Exchanges under the symbol PPP.

CONTACT: Pogo Producing Co., Houston

Paul G. Van Wagenen, 713/297-5000