Plains Exploration & Production Co. will acquire Pogo Producing Co. for $3.6 billion in stock and cash in a deal that will create a new entity wielding 1.4 billion barrels of oil equivalent, it was announced Tuesday.

Plains’s doubling of reserves comes with exploration acreage in the Texas Panhandle, Permian and Gulf Coast areas, as well as the prolific Madden Field in Wyoming

"Today's announcement represents a significant milestone in the proud and productive 38-year history of Pogo Producing Company," Pogo chairman, president and chief exec, Paul G. Van Wagenen said a statement.

With Pogo’s reported 219 MM boe in proven reserves, Plains’s proved stores creap to 635 MM boe.

The boards, but not the shareholders, of both companies have approved the deal, which is expected to close late in 2007.