HOUSTON, Aug. 16 /PRNewswire-FirstCall/ -- Newfield Exploration Company
(NYSE: NFX) today announced results from the Blackbeard West #1 exploration
test, located at South Timbalier 168 in 70' of water. The well was drilled
to a total depth of 30,067' and encountered a thin gas bearing sand below
30,000'. The well failed to reach its primary targets because of higher
than expected pressure. The operator is preparing to temporarily abandon
the well.
"Although disappointed that we were unable to test our primary
objectives, we have learned a great deal about drilling ultra-deep wells,"
said David A. Trice, Newfield Chairman, President and CEO. "This has been a
challenging well to test a true frontier play, but Newfield is sufficiently
encouraged to continue investing in this play. We intend to use the
information gathered from this well to investigate if a well can be
designed which will allow us to safely test this prospect in the future."
Newfield has invested approximately $25 million (net) to date in the
drilling of the Blackbeard West #1 well, which covers multiple blocks in
the South Timbalier and Ship Shoal areas offshore Louisiana. The Blackbeard
West Prospect is subject to a 1.25% overriding royalty interest held by the
Treasure Island Royalty Trust (OTC Pink Sheets: TISDZ).
Blackbeard West #1 is operated by Exxon Mobil Corporation, with a 25%
interest in the well. Newfield has a 23% interest. Other co-venturers
include BP Exploration and Production Inc. (20%), Petrobras America Inc.
(20%), Dominion Exploration & Production Inc. (7%) and BHP Billiton
Petroleum (Deepwater) Inc. (5%).
Newfield Exploration Company is an independent crude oil and natural
gas exploration and production company. The Company relies on a proven
growth strategy 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 Uinta Basin of the Rocky Mountains and the
Gulf of Mexico. The Company has international exploration and development
projects underway in Malaysia, the U.K. North Sea and China.
The redesign and drilling of an exploration test of the Blackbeard West
Prospect is subject to numerous uncertainties. The lease blocks on which
the prospect is located are beyond their primary terms. Newfield is working
on plans to retain the leases, but its success is uncertain. Newfield also
is uncertain whether the prospect can be safely tested in an economically
feasible manner. Newfield anticipates that it will be at least two years
before drilling of a redesigned well could commence. There is no production
and there are no proved reserves associated with the Treasure Island
exploration concept. Blackbeard West #1 was the first well drilled to test
this exploration concept and no wells have encountered commercial
quantities of hydrocarbons. As a result, ultimate commercialization of the
concept may never be realized because no prospects are tested, because oil
or gas is not discovered or, if discovered, because the costs of
exploration and development may make commercialization uneconomic. Please
refer to a more complete discussion of the risks associated with this
exploration concept in Treasure Island Royalty Trust's Annual Report on
Form 10-K for the year ended December 31, 2005.
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,
info@newfield.com
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