Pogo Producing Company ( PPP) signed a production sharing contract for Block 124 offshore in the Phu Khanh Basin, Vietnam for exploring oil and gas. The Houston-based company will serve as operator of the block and will have a 100% working interest. PetroVietnam will have a participation of up to 20% in any oil and gas discovery. Block 124 spans about 1.48 million acres along the eastern coastline of Vietnam, northeast of Ho Chi Minh City. The exploratory phase of the contract is seven years, during which the company is scheduled to dig two explorational wells in the first three years. "Pogo's preliminary analysis of prospectivity, utilizing existing 2-D seismic data, indicates the presence of several promising leads in Miocene and Paleozoic age rocks,'' the company said.