**Exhibit 12.1**

 

**POGOPRODUCING COMPANY & SUBSIDIARIES**

**RATIOOF EARNINGS TO FIXED CHARGES**

**(Dollarsin Thousands)**

 
| ** **                                                                                | ** ** | **For the year ended December 31,** | ** ** |
|-------------------------------------------------------------------------------------------|------------|------------------------------------------|------------|
| ** **                                                                                | ** ** | **2005**                                 | ** ** | **2004** | ** ** | **2003** | ** ** | **2002** | ** ** | **2001** | ** ** |
|                                                                                      |       |                                     |       |   |   |   |   |   |   |   |   |
| EARNINGS:                                                                                 |       |                                     |       |   |   |   |   |   |   |   |   |
| Income from  continuing operations before taxes, minority interest, and accounting change |       | $                                        | 457,953    |   | $ | 397,901 |   | $ | 372,606 |   | $ | 116,325 |   | $ | 91,762 |   |
| Add —                                                                                |       |                                     |       |   |   |   |   |   |   |   |   |
| Fixed  charges                                                                            |       | 72,016                                   |       | 32,118 |   | 48,687 |   | 63,164 |   | 67,316 |   |
| Less —                                                                               |       |                                     |       |   |   |   |   |   |   |   |   |
| Preferred  dividend requirement of consolidated subsidiary                                |       | —                                   |       | — |   | — |   | (4,140 | ) | (9,999 | ) |
| Capitalized  interest                                                                     |       | (23,480                                  | )          | (14,216 | ) | (16,531 | ) | (24,033 | ) | (33,242 | ) |
|                                                                                      |       |                                     |       |   |   |   |   |   |   |   |   |
| Total  earnings                                                                           |       | $                                        | 506,489    |   | $ | 415,803 |   | $ | 404,762 |   | $ | 151,316 |   | $ | 115,837 |   |
|                                                                                      |       |                                     |       |   |   |   |   |   |   |   |   |
| FIXED CHARGES:                                                                            |       |                                     |       |   |   |   |   |   |   |   |   |
| Interest  expense                                                                         |       | $                                        | 68,654     |   | $ | 29,333 |   | $ | 46,360 |   | $ | 57,450 |   | $ | 56,259 |   |
| Preferred  dividend requirement of consolidated subsidiary                                |       | —                                   |       | — |   | — |   | 4,140 |   | 9,999 |   |
| Portion of  rental expense representing interest                                          |       | 3,362                                    |       | 2,785 |   | 2,327 |   | 1,574 |   | 1,058 |   |
|                                                                                      |       |                                     |       |   |   |   |   |   |   |   |   |
| Total fixed  charges                                                                      |       | $                                        | 72,016     |   | $ | 32,118 |   | $ | 48,687 |   | $ | 63,164 |   | $ | 67,316 |   |
|                                                                                      |       |                                     |       |   |   |   |   |   |   |   |   |
| RATIO OF  EARNINGS TO FIXED CHARGES                                                       |       | 7.0                                      | x          | 12.9 | x | 8.3 | x | 2.4 | x | 1.7 | x |
|                                                                                      |       |                                     |       |   |   |   |   |   |   |   |   |
| Rent expense                                                                              |       |                                     |       |   |   |   |   |   |   |   |   |
|                                                                                      |       |                                     |       |   |   |   |   |   |   |   |   |
| Office space                                                                              |       | $                                        | 3,305      |   | $ | 2,859 |   | $ | 2,739 |   | $ | 2,700 |   | $ | 2,520 |   |
| Other  equipment                                                                          |       | 6,782                                    |       | 5,497 |   | 4,241 |   | 2,022 |   | 654 |   |
|                                                                                      |       |                                     |       |   |   |   |   |   |   |   |   |
| Total rent  expense                                                                       |       | $                                        | 10,087     |   | $ | 8,356 |   | $ | 6,980 |   | $ | 4,722 |   | $ | 3,174 |   |
| Percent  assumed to be interest                                                           |       | 33                                       | %          | 33 | % | 33 | % | 33 | % | 33 | % |
|                                                                                      |       | $                                        | 3,362      |   | $ | 2,785 |   | $ | 2,327 |   | $ | 1,574 |   | $ | 1,058 |   |

 

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