- Expands Newfield's industry-leading STACK footprint to approximately 265,000 net acres. Significant overlap with Newfield's existing acreage in Kingfisher, Blaine, Dewey and Canadian counties (see map in @NFX located on the Company's website);
- More than 90% of the acreage to be acquired is held-by-production, requiring only modest capital investments over the next several years;
- Of the total consideration, approximately
$50 millionis associated with proved developed producing (PDP) reserves and reimbursement for recent STACK wells which are currently drilling or have been drilled and are planned for completion. Excluding PDP and reimbursement allocations, the undeveloped acreage value equates to approximately $10,000per acre;
- Current net production from the assets is approximately 3,800 BOEPD (55% liquids) and is expected to more than double by year-end 2016 as recently drilled wells are completed and turned to sales;
- Including this transaction, Newfield estimates that its cumulative investments in STACK acreage to date total less than
$3,000per acre. Newfield's average working interest across the 265,000 net acres in STACK would be approximately 50%;
- Substantial future upside from multiple prospective horizons, improving efficiencies in drilling and completion optimization, and enhanced well performance. Newfield has identified more than 1,000 potential drilling locations on this new acreage.
"This bolt-on acquisition is ideal for Newfield, combining strategic fit in a growing resource play where we have a clear competitive advantage," said Newfield Chairman
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "may," "believe," "expect," "anticipate," "intend," "estimate," "project," "target," "goal," "plan," "should," "will," "predict," "guidance," "potential" or other similar expressions are intended to identify forward-looking statements. Other than historical facts included in this news release, all information and statements, including but not limited to information regarding acquisitions, use of cash, planned capital expenditures, estimated reserves, estimated production targets, drilling and development plans, the timing of production, planned capital expenditures, and other plans, strategies and objectives for future operations, are forward-looking statements. Although, as of the date of this news release, Newfield believes that these expectations are reasonable, this information is based upon assumptions and anticipated results that are subject to numerous uncertainties and risks. Actual results may vary significantly from those anticipated due to many factors, including but not limited to commodity prices, drilling results, our liquidity and the availability of capital resources, operating risks, industry conditions,
For additional information, please contact Newfield's Investor Relations department.
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