EXHIBIT 99.1

January 30,
2004

Pogo
Producing Company
Post Office Box 2504
Houston, Texas 77252-2504

Gentlemen:

At
your request, we have prepared an estimate of the reserves, future production, and income attributable to certain leasehold and royalty interests of Pogo Producing Company (Pogo) as
of January 1, 2004. The subject properties are located in the states of Louisiana, New Mexico, Oklahoma, Texas and in the state and federal waters offshore Louisiana and Texas. The
international reserves are located in Hungary and offshore Thailand. The income data were estimated using the Securities and Exchange Commission (SEC) requirements for future price and cost
parameters.

The
estimated reserves and future income amounts presented in this report are related to hydrocarbon prices. Hydrocarbon prices in effect at December 31, 2003 were used in the
preparation of this report as required by SEC rules; however, actual future prices may vary significantly from December 31, 2003 prices. Therefore, volumes of reserves actually recovered and
amounts of income actually received may differ significantly from the estimated quantities presented in this report. The results of this study are summarized below.

SEC PARAMETERSEstimated Net Reserves and Income Data
Certain Leasehold and Royalty Interests of Pogo Producing CompanyAs of January 1, 2004

|                       |                         | Proved
|---------------------- | ----------------------- | ------
|
|
|
|Net Remaining Reserves |                         |       
|                       | Oil/Condensate  MBBL   |       
|                       | Plant Products  MBBL   |       
|                       | Gas  MMCF              |       
|Income Data  M$       |                         |       
|                       | Future Gross Revenue    |       
|                       | Deductions              |       
|                       |                         |       
|                       | Future Net Income (FNI) |       
|                       | Discounted FNI @ 10%    |       

Liquid
hydrocarbons are expressed in standard 42 gallon barrels. All gas volumes are expressed in millions of cubic feet (MMCF) at the official temperature and pressure bases of the
areas in which the gas reserves are located.

The
estimates of the reserves, future production, and income attributable to properties in this report were prepared using the economic software package Aries for Windows, a copyrighted
program of Landmark Graphics. The program was used solely at the request of Pogo. Ryder Scott has found this program to be generally acceptable, but notes that certain summaries and calculations may
vary due to rounding and may not exactly match the sum of the properties being summarized. Furthermore, one line economic summaries may vary slightly from the more detailed cash flow projections of
the same properties, also due to rounding. The rounding differences are not material.

The
future gross revenue is after the deduction of production taxes. The deductions comprise the normal direct costs of operating the wells, ad valorem taxes, recompletion costs,
development costs, and

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certain
abandonment costs net of salvage. SRB taxes on the Thailand properties were estimated by Pogo and included under the "Other" deductions column in the Thailand cash flow tables. The future net
income is before the deduction of state and federal income taxes and general administrative overhead, and has not been adjusted for outstanding loans that may exist nor does it include any adjustment
for cash on hand or undistributed income. Liquid hydrocarbon reserves account for approximately 62 percent and gas reserves account for the remaining 38 percent of total future gross
revenue from proved reserves.

The
discounted future net income shown above was calculated using a discount rate of 10 percent per annum compounded monthly. Future net income was discounted at four other
discount rates which were also compounded monthly. These results are shown on each estimated projection of future production and income presented in a later section of this report and in summary form
below.

Discounted Future Net Income  M$
As of January 1, 2004Discount Rate
Percent

Total
Proved8

$
2,591,77412

$
2,297,38315

$
2,122,05218

$
1,974,218


The
results shown above are presented for your information and should not be construed as our estimate of fair market value.

Reserves Included in This Report

Theproved reservesincluded herein conform to the definition as set forth in the Securities and Exchange Commission's
Regulation S-X Part 210.4-10 (a) as clarified by subsequent Commission Staff Accounting Bulletins. The definition of proved reserves is included under the
tab "Petroleum Reserves Definitions" in this report.

Because
of the direct relationship between volumes of proved undeveloped reserves and development plans, we include in the proved undeveloped category only reserves assigned undeveloped
projects or locations that we have been assured will definitely be developed or drilled.

Pogo
has interests in certain fields or leases that may contain substantial additional reserves that are not included in this report. A portion of these reserves may qualify as either
probable or possible reserves, but this study was limited to proved reserves at Pogo's request. Pogo has active exploratory and development drilling programs that may result in the discovery or
reclassification of significant additional volumes.

The
various reserve status categories are defined under the tab "Petroleum Reserves Definitions" in this report. The developed non-producing reserves included herein are
composed of the behind pipe and shut in categories.

Estimates of Reserves

A significant portion of the reserves included in this report was estimated using various performance methods. The reserves estimated by performance methods
utilized extrapolations of various historical data in those cases where such data were definitive in our opinion. Reserves were estimated by the volumetric method in those cases where the historical
performance data was inconclusive or for reservoirs that have not yet begun production. A significant portion of reserves attributed to the Thailand properties are based on volumetric analysis. All of
the reserves attributed to Pogo's new discovery in Hungary are based on volumetric analysis.

The
reserves included in this report are estimates only and should not be construed as being exact quantities. They may or may not be actually recovered, and if recovered, the revenues
therefrom and

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the
actual costs related thereto could be more or less than the estimated amounts. Moreover, estimates of reserves may increase or decrease as a result of future operations.

Future Production Rates

Initial production rates are based on the current producing rates for those wells now on production. Test data and other related information were used to estimate
the anticipated initial production rates for those wells or locations that are not currently producing. If no production decline trend has been established, future production rates were held constant
until a decline in ability to produce was anticipated. An estimated rate of decline was then applied to depletion of the reserves. If a decline trend has been established, this trend was used as the
basis for estimating future production rates. For reserves not yet on production, sales were estimated to commence at an anticipated date furnished by Pogo.

The
future production rates from wells now on production may be more or less than estimated because of changes in market demand or allowables set by regulatory bodies. Wells or locations
that are not currently producing may start producing earlier or later than anticipated in our estimates of their future production rates.

Hydrocarbon Prices

Pogo furnished us with hydrocarbon prices in effect at December 31, 2003 and with its forecasts of future prices which take into account SEC and Financial
Accounting Standards Board (FASB) rules, current market prices, contract prices, and fixed and determinable price escalations where applicable.

In
accordance with FASB Statement No. 69, December 31, 2003 market prices were determined using the daily oil price or daily gas sales price ("spot price") adjusted for
oilfield or gas gathering hub and wellhead price differences (e.g. grade, transportation, gravity, sulfur and BS&W) as appropriate. Also in accordance with SEC and FASB specifications, changes in
market prices subsequent to December 31, 2003 were not considered in this report.

For
hydrocarbon products sold under contract, the contract price including fixed and determinable escalations, exclusive of inflation adjustments, was used until expiration of the
contract. Upon contract expiration, the price was adjusted to the current market price for the area and held at this adjusted price to depletion of the reserves.

Costs

Operating costs for the leases and wells in this report are based on the operating expense reports of Pogo and include only those costs directly applicable to the
leases or wells. When applicable, the operating costs include a portion of general and administrative costs allocated directly to the leases and wells under terms of operating agreements. No deduction
was made for indirect costs such as general administration and overhead expenses, loan repayments, interest expenses, and exploration and development prepayments that are not charged directly to the
leases or wells.

Development
costs were furnished to us by Pogo and are based on authorizations for expenditure for the proposed work or actual costs for similar projects. The estimated net cost of
abandonment after salvage was included for all offshore properties where abandonment costs net of salvage are significant. Abandonment costs were also included for other properties where the net cost
of abandonment is expected to exceed any salvage value. The estimates of the net abandonment costs furnished by Pogo were accepted without independent verification.

The
initial operating costs for each property were based on the current operating costs or estimated costs for each property. In most cases, these costs were held constant for the life
of each property. However, in certain cases, the operating cost is comprised of a fixed and variable component. The variable component is typically related to well count or production throughput.
Historically, the variable costs decline as the field is produced.

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General

Table A presents a one line summary of proved reserve and income data for each of the subject properties which are ranked according to their future net income
discounted at 10 percent per year. Table B presents a one-line summary of gross and net reserves and income data for each of the subject properties. Table C presents a
one-line summary of initial basic data for each of the subject properties. Volume 1 presents Pogo company summaries. Volumes 2 through 7 present projections of production and income by
years beginning January 1, 2004 for each of Pogo's divisions and are further broken down by field, lease or well.

While
it may reasonably be anticipated that the future prices received for the sale of production and the operating costs and other costs relating to such production may also increase or
decrease from existing levels, such changes were, in accordance with rules adopted by the SEC, omitted from consideration in making this evaluation.

The
estimates of reserves presented herein were based upon a detailed study of the properties in which Pogo owns an interest; however, we have not made any field examination of the
properties. No consideration was given in this report to potential environmental liabilities that may exist nor were any costs included for potential liability to restore and clean up damages, if any,
caused by past operating practices. Pogo has informed us that they have furnished us all of the accounts, records, geological and engineering data, and reports and other data required for this
investigation. The ownership interests, prices, and other factual data furnished by Pogo were accepted without independent verification. The estimates presented in this report are based on data
available through December 31, 2003.

Pogo
has assured us of their intent and ability to proceed with the development activities included in this report, and that they are not aware of any legal, regulatory or political
obstacles that would significantly alter their plans.

Neither
Ryder Scott Company nor any of our employees have any interest in the subject properties and neither the employment to make this study nor the compensation is contingent on our
estimates of reserves and future income for the subject properties.

This
report was prepared for the exclusive use and sole benefit of Pogo Producing Company. The data, work papers, and maps used in this report are available for examination by authorized
parties in our offices. Please contact us if we can be of further service.

| |  | Very truly yours,                                                    
| |  | ---------------------------------------------------------------------
| |  | RYDER SCOTT COMPANY, L.P.                                            
| |  | /s/ROBERT M. WAGNER, P.E.Robert M. Wagner, P.E.
Senior Vice President

RMW/sw

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