HOUSTON, Aug. 6 /PRNewswire-FirstCall/ -- Newfield Exploration Company
(NYSE: NFX) today announced the closing on its previously announced sale of
its Gulf of Mexico shelf assets to McMoRan Exploration Co. (NYSE: MMR) for
total cash consideration of $1.1 billion and the assumption of liabilities
associated with future abandonment of wells and platforms.
Newfield utilized Internal Revenue Code Section 1031 Tax Deferred
Exchange rules for the sale of its Gulf of Mexico shelf assets and its
recent $578 million acquisition of Rocky Mountain assets from Stone Energy.
As a result, after-tax proceeds from the sale of the Gulf of Mexico shelf
assets exceed $1.0 billion.
Newfield's estimated 2007 and 2008 production guidance (issued July 25)
accounted for this and other anticipated divestitures and remains 240 - 253
Bcfe.
The Company's previously announced divestiture packages also include
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.
Jefferies Randall & Dewey and Morgan Stanley & Co. Incorporated acted
as financial advisors to Newfield in connection with its Gulf of Mexico
shelf asset sale.
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 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 proposed
divestitures are forward looking and are based upon assumptions and
anticipated results that are subject to numerous uncertainties. Completion
of the 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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CONTACT:
Investor Relations, Steve Campbell,
+1-281-847-6081, or Media Relations, Keith Schmidt,
+1-281-674-2650, info@newfield.com, both of Newfield Exploration
Company
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