Plains Exploration & Production Company (PXP)

[OilStockReport]

Could become a buying op here.

Plains' US deep sale delayed

Plains Exploration & Production said the planned sale of its deep-water properties in the Gulf of Mexico would be delayed as it failed to get the right value for them because of the prevailing tough regulatory environment, sending its shares down 6%.

News wires 24 March 2011 14:19 GMT

The Houston-based oil and gas company is looking to shift away from offshore operations to onshore fields due to the proposed wave of regulations following the oil spill in the US Gulf.

"To date, the deepwater separation process reflects a discounted value due to the current regulatory uncertainties, permit delays, and reduced activity for Gulf of Mexico exploration and development," chief executive James Flores said today.

The company intends to sell its Friesian and Lucius oil discoveries, and interests in 107 blocks, 9 well-defined prospects and an additional 22 prospects or leads in Pliocene, Miocene and Lower Tertiary reservoirs in the US Gulf.

"We believe it is prudent to allow time for the regulatory uncertainties to abate and to complete the Lucius well test.