Newfield Signs Production Sharing Contract on PM 323 Offshore Malaysia*

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Newfield Signs Production Sharing Contract on PM 323 Offshore Malaysia*
    HOUSTON, June 15 /PRNewswire-FirstCall/ -- Newfield Exploration Company
(NYSE: NFX) today announced that its subsidiary signed a new production
sharing contract (PSC) on block PM 323 offshore Malaysia. The PSC is in
partnership with PETRONAS Carigali Sdn. Bhd. (Carigali), the exploration and
production subsidiary of Malaysia's state-owned Petroliam Nasional Berhad
(PETRONAS). This is the third PSC that Newfield has been awarded offshore
Malaysia.
    Newfield will operate PM 323 with a 60% interest. Carigali holds the
remaining 40% interest. PM 323 covers approximately 335,000 acres in the Malay
Basin and is located about 185 miles offshore Kemaman, Terengganu. The average
water depth on the block is about 200'. PM 323 is located approximately
40 miles from Newfield's existing Peninsular Malaysia acreage in PM 318.
    Newfield has committed to invest approximately $160 million in PM 323 over
the next three years. There are seven existing discoveries located on the
block. Newfield and Carigali will immediately begin the process to develop the
East Belumut and Chermingat oil fields. The two fields are expected to be
on-line by early 2008 at a gross rate of approximately 15,000 barrels of oil
per day (BOPD). The partners will also drill five exploration and appraisal
wells and acquire 600 sq. kilometers of 3-D seismic on the block.
    "Malaysia has developed into a focus area for us, offering visible
production growth over the next few years and an inventory of attractive
exploration prospects that could provide additional developments," said David
A. Trice, Newfield Chairman, President and CEO. "We have developed a great
business partnership with Carigali and PETRONAS. The Malay Basin is a prolific
hydrocarbon province with good fiscal terms, attractive world markets and
growing infrastructure. We are excited about these new field developments and
the upside this new PSC brings to our growing portfolio of impact
opportunities."
    Newfield entered Malaysia in 2004 with the signing of two PSCs -- PM 318
and deepwater Block 2C. Newfield owns a 50% interest in PM 318, operated by
Carigali, where current gross production is approximately 10,000 BOPD. In
July 2005, the partners plan to begin drilling the first of six wells on PM
318. Three wells will be drilled to develop the Abu Field, expected to be
on-line in early 2007 at an initial production rate of approximately
12,000 BOPD. The other three wells will be drilled to explore for new fields
and appraise an existing discovery.
    Newfield has a 60% interest in deepwater Block 2C which covers 1.2 million
acres offshore Sarawak. Newfield has secured a deepwater semi-submersible rig
to drill the first of two high-potential exploration wildcats in 2006.

    Newfield Exploration Company is an independent crude oil and natural gas
exploration and production company. The Company relies on a proven growth
strategy that includes balancing acquisitions with drill bit opportunities.
Newfield's areas of operation include the Gulf of Mexico, the U.S. onshore
Gulf Coast, the Anadarko and Arkoma Basins of the Mid-Continent, the Uinta
Basin of the Rocky Mountains and select international ventures.

    *The statements set forth in this release regarding timing of first
production and expected rates, development plans and future capital spending
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, the availability of drilling rigs and other support services, the
availability of capital resources, labor conditions and other factors set
forth in the Company's Annual Report on Form 10-K for the year ended
December 31, 2004. In addition, the drilling of oil and gas wells and the
production of hydrocarbons are subject to governmental regulations and
operating risks.

     Newfield Exploration Company                  For information, contact:
     363 N. Sam Houston Parkway East, Ste. 2020    Steve Campbell
     Houston, TX 77060                             (281) 847-6081
     http://www.newfld.com                         info@newfld.com
SOURCE Newfield Exploration Company
http://www.newfld.com
CONTACT:
Steve Campbell of Newfield Exploration
Company, +1-281-847-6081, or info@newfld.com