EXHIBIT 99.1


PLAINS RESOURCES INC.
NEWS RELEASE
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CONTACT: PAUL H. PRINCE, JR.
         SENIOR FINANCIAL ANALYST
         (713) 654-1414 OR (800) 934-6083

FOR IMMEDIATE RELEASE

              PLAINS RESOURCES INCREASES STOCK REPURCHASE PROGRAM
                            BY FIVE MILLION SHARES


     Houston, Texas, July 12, 2001 - Plains Resources Inc. (AMEX: PLX) today
announced that as a result of repurchasing approximately three million shares of
its common stock during the last year under its existing stock repurchase
program, which authorized the repurchase of up to three million shares, its
Board of Directors approved a program to repurchase up to an additional five
million shares of Plains' common stock. "We believe the Company's stock is a
good long-term investment," said James C. Flores, Chairman of the Board and
Chief Executive Officer. "We are confident in Plains' future and believe this
repurchase program provides the Company the additional flexibility to capitalize
on opportunities that will produce long-term benefits for the Company and our
stockholders."

     Any repurchases under this program will be consistent with the Company's
credit agreement and outstanding indentures. Also, under this program, Plains
anticipates the stock will be repurchased through privately negotiated
transactions or in the open market. The repurchase program's terms have been
structured to comply with the Securities and Exchange Commission's Rule 10b-18,
and is subject to market conditions, other applicable legal requirements, and
other factors. The repurchase program does not obligate Plains to acquire any
specific number of shares and may be suspended at any time.

     Except for the historical information contained herein, the matters
discussed in this news release are forward-looking statements that involve
certain risks and uncertainties that could cause actual results to differ
materially. These risks and uncertainties include, among other things, economic
conditions, oil and gas price volatility, uncertainties inherent in the
exploration for and development and production of oil and gas and in estimating
reserves, availability (or lack thereof) of favorable acquisition or combination
opportunities, successful integration and future performance of recently-
acquired assets, regulatory changes and other factors discussed in the Company's
reports filed with the Securities and Exchange Commission including their
reports on Form 10-K (as amended) and Form 10-Q for the periods ended
December 31, 2000, and March 31, 2001, respectively.

     Plains is an independent energy company engaged in the exploration,
acquisition, development and exploitation of crude oil and natural gas. Through
its ownership in Plains All American Pipeline, L.P., Plains has interests in the
midstream activities of marketing, gathering, transportation, terminalling and
storage of crude oil. Plains is headquartered in Houston, Texas.

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