Newfield adds additional natural gas hedges for 2008
HOUSTON, Aug. 3 /PRNewswire-FirstCall/ -- Newfield Exploration Company
(NYSE: NFX) today announced the signing of a purchase and sale agreement to
sell all of its coal bed methane assets in the Cherokee Basin of
northeastern Oklahoma to Constellation Energy Partners (NYSE: CEP) for $128
million. The sale is expected to close in the third quarter of 2007.
Current net production is approximately 10 MMcf/d. The transaction
includes the sale of more than 650 producing wells, Newfield's interests in
approximately 80,000 net acres and a gas gathering system. Newfield entered
this region in 2004 through the purchase of assets from two private
companies.
Newfield's production guidance (issued July 25) accounted for this and
other anticipated divestitures and remains 240 - 253 Bcfe in 2007 and 215 -
230 Bcfe in 2008.
The Company's previously announced divestiture packages include its
Gulf of Mexico shelf assets (expected to close in early August), its assets
in the U.K. North Sea and Bohai Bay, China, and other select properties in
Texas and the Mid-Continent. Proceeds from these sales will be used to pay
down debt and fund capital expenditures.
Natural Gas Hedging Update: Taking advantage of the recent moves in
natural gas futures, Newfield has added additional hedges since the
Company's last update on July 25. Newfield added fixed positions for April
2008 - October 2008 of 60 MMcf/d at an average of $8.22 per Mcf.
Approximately 45% of the Company's expected production for this period is
now hedged. A complete hedging position update can be found in the @NFX
publication on Newfield's home page at http://www.newfield.com.
Simmons & Company International and Griffis & Associates LLC acted as
financial advisors in connection with Newfield's Cherokee Basin asset sale.
Newfield Exploration Company is an independent crude oil and natural
gas exploration and production company. The Company relies on a proven
strategy of growing reserves through the drilling of a balanced risk/reward
portfolio and select acquisitions. Newfield's domestic areas of operation
include the 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, the U.K. North Sea and China.
**The statements set forth in this release regarding the expected
timing of asset sales are forward looking and are based upon assumptions
and anticipated results that are subject to numerous uncertainties. The
sale of Newfield's Cherokee Basin Assets (and the sale of its Gulf of
Mexico shelf assets) is subject to customary closing conditions. Completion
of Newfield's other proposed divestitures is subject to Newfield receiving
offers that it considers acceptable for the properties.
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, Keith Schmidt, +1-281-674-2650, both
of Newfield Exploration, info@newfield.com
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