2008-09-02-2008-04-23

Bought STX properties, gaining 100 Bcfe 2P, 19 MMcfe/d.

Newfield Exploration Co., Houston, (NYSE: NFX) plans to acquire South Texas properties from a private company for $227 million. The assets include 47,000 gross acres (32,000 net). Net production is approximately 19 million cubic feet equivalent per day. Proved and probable reserves are 100 billion cubic feet equivalent with approximately half classified as proved under SEC guidelines. Newfield has identified more than 100 drilling locations with the potential to add more than 200 billion cubic feet equivalent of total reserves. Newfield president and chief executive David Trice says, "These fields are right in the heart of our operations in the Wilcox trend and expand our presence in the Vicksburg trend. There is additional potential on exploratory acreage that comes with the deal as well." Newfield plans to finance the transaction under its $1.25 billion undrawn revolving credit facility. Closing was expected in May.