HOUSTON, Sept. 12 /PRNewswire-FirstCall/ -- Newfield Exploration
Company (NYSE: NFX), through its wholly owned subsidiary, Newfield
Petroleum U.K. Limited, today announced an agreement with Sojitz Energy
Project Limited, a wholly owned subsidiary of Sojitz Corporation, relating
to Newfield's Southern Gas Basin exploration and development program.
Under the agreement, Sojitz will participate in the ongoing development
of the Grove Field and the 2007 exploration and appraisal drilling program
which consists of the West Cutter Prospect, the Seven Seas Discovery and
two wells planned in the West Sole Area under the existing Exploration and
Development Agreement between BP Exploration Operating Company Limited and
Newfield. Sojitz will earn 15% of Newfield's interest in the Grove Field
and 20% of Newfield's interest in the West Cutter, Seven Seas and West Sole
Area Prospects.
This transaction is valued at approximately $100 million and is subject
to the necessary U.K. government approvals.
A production platform for the Grove development was recently installed
in the field. The platform has production capacity of approximately 100
MMcf/d of gas and 2,000 BCPD. Newfield is currently drilling the Grove #5
well as a horizontal producer in the central and western fault blocks.
Newfield anticipates that the field will be on-line in December 2006.
Production is expected to ramp up to approximately 60 MMcf/d and 1,000 BCPD
in early 2007.
The recent #6 exploration well was drilled from a remote surface
location into the western fault block approximately 2.1 km west of the
Grove platform. The well found approximately 40' of net gas pay and was
temporarily abandoned with a subsea production tree installed. Final plans
for the #6 well will be determined once the information obtained from the
platform development wells has been integrated into the overall field
development plan.
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 statements set forth in this release regarding anticipated
development and exploration plans, the timing of initial production from
Grove, estimated production rates from Grove and forecasted production for
2007 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, geologic and drilling conditions, 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.
Newfield's ability to produce oil and gas from the Gulf of Mexico is
dependent on infrastructure (such as host platforms, pipelines and onshore
processing facilities) owned by third parties. Much of this infrastructure
was damaged by Hurricanes Katrina and Rita. Most of Newfield's Gulf of
Mexico production has returned to pre- storm levels, but it is difficult to
predict when all production will be restored. 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,
info@newfield.com
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