In an effort to realize more value for its shareholders, PlainsResources has decided to evaluate strategic restructuringalternatives to help increase the value, and value-creating abilityof its upstream and midstream business segments.

The company has retained Petrie Parkman & Co. to consult onthe company’s options which include: a spin-off or split-off ofeither the upstream or midstream segments; a spin-off , or specialdividend of certain units of Plains All American Pipeline L.P.; andpotential asset sales.

“Over the past nine years, we have built a solid and strategicbase of cash flow and income-generating assets in each of ourupstream and midstream segments,” said Greg L. Armstrong, CEO ofPlains Resources. “However, our somewhat complex corporatestructure, which involves two separate publicly-traded vehicles ondifferent stock exchanges, and the diverse nature of the investorbases of these two vehicles dictate that we evaluate alternativestructures in an effort to unlock the value for the company’sstakeholders and position each segment to perform at optimallevels.”

Armstrong added that both segments have internal and externalgrowth opportunities, which require the dedication of two separate,fully staffed management teams. He said SpencerStuart has beenhired to track down a qualified CEO for Plains Resources’ upstreambusiness.

“These steps will also free up incremental resources to dedicateto Plains All American’s continued growth and to aggressively usewhat we believe is the absolute optimal midstream vehicle forgrowth through strategic, cash flow accretive acquisitions. Webelieve these steps will ensure that both business enterprises arebeing driven as hard as is prudently feasible and yielding thehighest possible returns to our equity holders,” Armstrong said.

Houston-based Plains Resources is an independent energy companyinvolved in the upstream activities of exploration and developmentof crude oil and natural gas, and midstream activities includingtransportation, marketing and storage of crude oil.

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