Agreement provides for joint development of 87,000 acres
HOUSTON, May 7 /PRNewswire-FirstCall/ -- Newfield Exploration Company
(NYSE: NFX) today announced the signing of an agreement with ExxonMobil to
jointly explore and develop approximately 87,000 gross acres in South
Texas, targeting the prolific Vicksburg Trend. Newfield expects an active
drilling program in the area over the next three years.
The agreement covers properties in Kenedy, Brooks and Hidalgo Counties
and complements Newfield's existing activity areas. Newfield's working
interest in the venture is approximately 50%. Expenditures associated with
the 2008 drilling program on these properties were previously included in
Newfield's capital budget.
"We are excited about signing the agreement with ExxonMobil to explore
and develop new fields in one of the most productive areas in South Texas,"
said David A. Trice, Chairman, President and CEO. "Our technical teams have
already identified prospects and have an inventory of locations for us to
test over the next several years. We're confident in our ability to add new
reserves and production in 2008 and beyond."
Newfield has been active in South Texas since 2000. Current net
production from the region is approximately 230 MMcfe/d. Newfield owns
interests in approximately 482,000 gross lease acres in South Texas.
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 an active drilling program 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 Gulf of Mexico. The Company has
international operations in Malaysia and China.
**The statements set forth in this release regarding estimated or
anticipated drilling activity is forward looking and is 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, the availability of
drilling rigs and other support services, the availability of capital
resources, the availability of refining capacity for the crude oil Newfield
produces from its Monument Butte field in Utah and labor conditions. 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:
Investor Relations, Steve Campbell,
+1-281-847-6081, or Media Relations, Keith Schmidt,
+1-281-674-2650, both of Newfield Exploration Company
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