HOUSTON, Oct. 10 /PRNewswire-FirstCall/ -- Newfield Exploration Company
(NYSE: NFX) today provided an update on its expected range of production for
2005 following production deferrals in the Gulf of Mexico related to Hurricane
Rita. In addition, Newfield updated production guidance for 2006-07. As a
reminder, the Company will be holding a previously scheduled investor day with
management on Tuesday, October 11, 2005. A webcast will begin at 8:15 a.m.
and can be accessed through the Company's website at http://www.newfld.com .
Year-to-date, four storms have caused production deferrals in the Gulf of
Mexico -- Dennis, Arlene, Katrina and Rita. Newfield expects that the full-
year impact of these storms will result in the deferral of 18-20 Bcfe from the
Gulf of Mexico. Since Hurricane Rita, Newfield has restored Gulf production
of approximately 60 MMcfe/d net out of total net production of about
320 MMcfe/d. Only about 14 MMcfe/d net is associated with lost platforms or
structures. The remainder is related to damage to host platforms, pipeline
infrastructure and onshore processing facilities. Newfield estimates that up
to 220 MMcfe/d net of the shut-in production could resume within the next
month if the condition of pipelines, host facilities and onshore processing
plants will permit.
The table below outlines Newfield's annual production guidance through
2007. The Company's major development projects outside of the Gulf of Mexico
remain on schedule. The increase in 2007 guidance reflects the return of
deferred production in the Gulf of Mexico and production from recent
discoveries.
Annual
Previous Guidance (Bcfe) Today's Guidance (Bcfe) Increase
2005 258-260 245-248 ~1%
2006 273-286 262-286 7-15%
2007 300-325 310-350 18-22%
"The storms of 2005 dealt a severe blow to Gulf of Mexico infrastructure.
Our operations personnel have done a great job of repairing damage and they
continue to find creative ways to flow oil and gas to shore. Our revised
production guidance reflects our best current assessment of the lingering
impact of these storms. A reduced and damaged rig fleet will create
challenges for all of us as we move forward," said David A. Trice, Chairman,
President and CEO.
"While these storms have resulted in a short-term production set back, we
have key development projects onshore and internationally that remain on-
track. These projects should add significant production in 2006 and beyond.
Our estimated production does not assume acquisitions or significant
exploration success."
Newfield Exploration Company is an independent crude oil and natural gas
exploration and production company. The Company relies on a proven growth
strategy that includes balancing acquisitions with drill bit opportunities.
Newfield's areas of operation include the Gulf of Mexico, the U.S. onshore
Gulf Coast, the Anadarko and Arkoma Basins of the Mid-Continent and the Uinta
Basin of the Rocky Mountains. The Company has development projects underway
offshore Malaysia, in the U.K. North Sea and in Bohai Bay, China.
**The statements set forth in this release regarding estimated production
volumes and timing 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.
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. In many cases, Newfield is uncertain of the
extent of the damages. As a result, it is difficult to predict when
production will be permitted to resume. Other factors that may cause actual
production to vary significantly from anticipated production include the
availability of drilling rigs and other support services, drilling results,
oil and gas prices, the prices of goods and services, delays in the
construction of infrastructure, delays in obtaining governmental approvals,
the availability of capital resources, labor conditions and other factors set
forth in the Company's Annual Report on Form 10-K for the year ended
December 31, 2004. In addition, the drilling of oil and gas wells and the
production of hydrocarbons are subject to governmental regulations and
operating risks.
Newfield Exploration Company For information, contact:
363 N. Sam Houston Parkway East, Ste. 2020 Steve Campbell
Houston, TX 77060 (281) 847-6081
http://www.newfld.com info@newfld.com
SOURCE Newfield Exploration Company
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Related links:
http://www.newfld.com
CONTACT:
Steve Campbell of Newfield Exploration
Company, +1-281-847-6081, or info@newfld.com
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