Newfield closes on sale of coal bed methane assets, sells additional
Mid-Cont. assets.
Company continues to add to 2008 natural gas hedges.
HOUSTON, Sept. 25 /PRNewswire-FirstCall/ -- Newfield Exploration
Company (NYSE: NFX) today provided an update regarding its producing
property sales. Year-to-date, Newfield has entered into transactions to
sell or has closed on sales for aggregate proceeds of more than $1.8
billion.
MID-CONTINENT:
Newfield today announced the signing of two separate purchase and sale
agreements with undisclosed private companies providing for the sale of
additional producing properties in the Mid-Continent. The combined proceeds
from the transactions are expected to be in excess of $56 million. The
transactions are expected to close in the fourth quarter of 2007. Current
net daily production associated with the properties is approximately 5
MMcfe/d. The properties are primarily located in Hemphill, Wheeler and Gray
Counties, Texas and Dewey and Custer Counties, Oklahoma. Combined, the
sales include approximately 13,550 net acres.
On September 21, Newfield closed on the sale of its coal bed methane
assets in the Cherokee Basin of northeastern Oklahoma for $128 million.
GULF COAST:
Newfield has closed, or is in the process of closing, on the sale of 25
fields in Texas for approximately $32 million. Net daily production from
these fields is approximately 4.5 MMcfe.
The following table summarizes the transactions announced to date:
REGION DESCRIPTION PROCEEDS STATUS
(in millions)
Gulf of Mexico GOM Shelf Assets $1,100 Closed 8/6/07
Mid-Continent Cherokee Basin
CBM Assets $128 Closed 9/21/07
Other producing Expected
assets $56 close: 10/07
Onshore Texas 25 fields throughout 18 fields closed;
Texas $32 remainder to
close 4Q07
North Sea Sale of entire Expected close:
North Sea business $486 10/07
TOTAL $1,802
In addition to the transactions above, Newfield continues to market its
producing assets in Bohai Bay, China.
Newfield's production guidance (issued July 25) accounted for these and
other anticipated divestitures and remains 240 - 253 Bcfe in 2007 and 215 -
230 Bcfe in 2008.
Natural Gas Hedging Update: Taking advantage of recent moves in natural
gas futures, Newfield has added additional hedges since its last update in
early August. Newfield added fixed positions for April 2008 - October 2008
of 60 MMcf/d at an average of $7.76 per Mcf. Nearly 60% of the Company's
expected production for this period is now hedged. In addition, Newfield
began to hedge gas volumes for the winter of 2008-09. Newfield recently
added costless collars for November 2008 - March 2009 of 50 MMcf/d with a
floor of $8.00 per Mcf and a ceiling of $10.18 per Mcf. Approximately 10%
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.
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 deepwater of 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
that are uncertain. Consummation of each of the asset sales is subject to
satisfaction of customary closing conditions.
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:
investors, Steve Campbell, +1-281-847-6081,
or media, Keith Schmidt, +1-281-674-2650, info@newfield.com, both
of Newfield Exploration Company
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