HOUSTON, Jan. 28 /PRNewswire-FirstCall/ -- Newfield Exploration Company
(NYSE: NFX) today announced that its wholly-owned subsidiary, Newfield
Exploration Mid-Continent Inc., signed two separate agreements for firm
transportation for 250,000 dekatherms per day (Dth/d) (approx. 250 MMcf/d)
from its growing Woodford Shale Play, located in the Arkoma Basin of
southeastern Oklahoma.
Newfield signed an agreement with Midcontinent Express Pipeline LLC
(MEP) for 200,000 Dth/d (approx. 200 MMcf/d) of firm capacity on the MEP
transmission system. MEP, connecting Bennington, Oklahoma, and Perryville,
Louisiana, will have initial capacity of 1.4 Bcf/d. Pricing for Newfield's
expected gas sales will be tied to Gulf Coast indices. Newfield's gas will
be delivered to Bennington through a new 50-mile pipeline planned by
MarkWest Energy Partners L.P. This line will connect MarkWest's gathering
system in the Woodford Shale Play to Bennington. Midcontinent Express
Pipeline is a 50/50 joint venture between Kinder Morgan Energy Partners,
L.P. (KMP) and Energy Transfer Partners, L.P. KMP is managing the
construction and will operate the pipeline.
Under a separate agreement, Newfield and Laclede Energy Resources, Inc.
signed a five year agreement for the firm sale and purchase of 40,000 Dth/d
(approx. 40 MMcf/d) in 2008 and 50,000 Dth/d (approx. 50 MMcf/d) in each of
2009 through 2012. The gas will be delivered into firm transportation on
Centerpoint Energy Gas Transmission Company and is priced using a fixed
differential to NYMEX
"The Woodford Shale Play is the fastest growing component of our
portfolio today," said David A. Trice, Newfield Chairman, President and
CEO. "We exited 2005 with 25 MMcfe/d of gross production in the Woodford.
We exited 2006 producing 85 MMcfe/d and 2007 at 165 MMcfe/d. We expect to
exit 2008 with another 50% increase in rate at approximately 250 MMcfe/d.
These agreements ensure that a large portion of our expected future
production from the Woodford will move out of the region on firm
transportation, reducing both basis risk and pricing volatility."
In September 2006, Newfield and MarkWest signed agreements providing
for MarkWest to construct and operate gathering pipelines and related
facilities in the Woodford Shale. Since that time, MarkWest has installed
approximately 250 miles of 16-inch and 12-inch low pressure and high
pressure steel pipe and more than 120 miles of 10-inch and 12-inch
gathering lines. MarkWest has connected 161 wells into the system and built
6 new compressor stations with horsepower totaling 71,000.
Newfield Exploration Company is an independent crude oil and natural
gas exploration and production company. The Company relies on a proven
growth strategy of growing reserves through the drilling of a balanced
risk/reward portfolio and select acquisitions. Newfield's domestic areas of
operation include the U.S. onshore Gulf Coast, the Anadarko and Arkoma
Basins of the Mid-Continent, the Rocky Mountains and the deepwater Gulf of
Mexico. The Company has international operations in Malaysia and China.
**The statements set forth in this release regarding estimated
production rates are forward looking and are based upon assumptions and
anticipated results that are subject to numerous uncertainties. Actual
results may vary significantly from those anticipated due to many factors
including drilling results, oil and gas prices, industry conditions, the
prices of goods and services and the availability of drilling rigs and
other support services. In addition, the drilling of oil and gas wells and
the production of hydrocarbons are subject to governmental regulations and
operating risks.
For information, contact:
Investor Relations: Steve Campbell (281) 847-6081
Media Relations: Keith Schmidt (281) 674-2650
Email: info@newfield.com
SOURCE Newfield Exploration Company
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Related links:
http://www.newfield.com
CONTACT:
investors, Steve Campbell, +1-281-847-6081,
or media, Keith Schmidt, +1-281-674-2650, both of Newfield
Exploration Company, info@newfield.com
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