Capex Data
Plains Exploration & Production Company's Board of Directors have approved the 2008 capital budget of $1.15 billion, including capitalized interest and general and administrative expenses. The capital plan supports PXP's diversified growth strategy by funding drilling programs in each of its key asset areas. PXP expects to fund capital expenditures from internal cash flow. Approximately 65 percent is expected to be allocated to production and development activities in the California, Rockies, Texas and Gulf of Mexico asset areas. Approximately 25 percent is intended for exploration projects primarily in the Gulf of Mexico, onshore Gulf Coast and Panhandle area of Texas and the remaining 10 percent for California real estate development and capitalized interest and G&A.
Of PXP's development spending, approximately 30 percent is allocated to the California oil fields located in the Los Angeles, the San Joaquin and the Santa Maria Basins. The Rockies, which includes the Piceance Basin and the Madden Field, represents approximately 15 percent while Texas, which primarily includes the Panhandle Ranches, the non-operated interests in the Permian Basin and the South Texas asset areas, represents approximately 25 percent. The remaining development budget is allocated to the delineation of our significant 2007 Gulf of Mexico exploratory discoveries, Flatrock and Friesian.
Future Plans
Based on the exploration success PXP has had in the Gulf of Mexico, the Company intends to continue focusing its exploration expertise in this area by participating in several Gulf of Mexico deepwater prospects during 2008. Up to approximately 80 percent of the exploration budget is allocated to the Gulf of Mexico. The remaining 20 percent is allocated to several exploratory wells in the Gulf Coast onshore 3-D areas and the Panhandle area of Texas.