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Newfield Announces Allocation of Treasure Island Royalty Trust Units

HOUSTON, Dec. 6 /PRNewswire-FirstCall/ -- Newfield Exploration Company (NYSE: NFX) today announced the results of the exchange agent's allocation of units in the Treasure Island Royalty Trust among the former holders of EEX Corporation common stock who made a valid election to receive trust units in connection with Newfield's recent acquisition of EEX. The trust units represent beneficial ownership interests in the Treasure Island Royalty Trust, a royalty trust formed in connection with the EEX acquisition. The trust will own non-expense bearing overriding royalty interests in any future production attributable to subject leasehold interests in an area referred to as "Treasure Island," as described in the proxy statement/prospectus prepared in connection with the transaction.

A total of 42,574,298 trust units were available for allocation. Former holders of EEX common stock delivered valid elections for a total of 1,753,630,087 trust units. Because the total elections exceeded the available units, the trust units were allocated in the following manner:

Step 1. Each electing holder was allocated a number of trust units equal to the lesser of:

    (a)  the number of shares of EEX common stock covered by his or her
         election form; and

    (b)  the number of trust units that he or she elected to receive.

A total of 17,542,230 trust units were allocated in Step 1, leaving 25,032,068 trust units available for allocation under Step 2.

Step 2. Each holder who elected to receive a number of trust units greater than the number of shares of EEX common stock covered by his or her election form was allocated .01441866 of one trust unit for each trust unit he or she elected that was not allocated to him or her in Step 1, generally rounded to the nearest whole unit.

The allocation ratio of .01441866 was determined by dividing the total number of trust units available for allocation after Step 1 (25,032,068 trust units) by the total number of trust units elected to be received by all electing holders that were not allocated in Step 1 (1,736,087,857 trust units).

The following table illustrates the allocation of trust units for a variety of trust unit elections.

    Shares of EEX
    Common Stock
    Covered by  Maximum Trust  Trust
    Election    Unit Election  Units      Step 1         Step 2        Total
    Form         Possible(1)  Elected  Allocation(2)  Allocation(3) Allocation
    1,000          105,611    105,611     1,000          1,508        2,508
    1,000          105,611     50,000     1,000            707        1,707
    1,000          105,611      1,000     1,000              0        1,000
    1,000          105,611        500       500              0          500

    (1)  The maximum number of trust units that an electing holder could have
         elected to receive was equal to 105.611 multiplied by the number of
         shares of EEX common stock covered by such holder's election form,
         rounded down to the nearest whole trust unit.
    (2)  The number of trust units allocated in Step 1 equals the lesser of
         (a) the number of shares of EEX common stock covered by the election
         form and (b) the number of trust units elected.
    (3)  The number of trust units allocated in Step 2 equals .01441866
         multiplied by the difference between the number of trust units
         elected by such holder and the number of trust units allocated to
         such holder in Step 1, rounded to the nearest whole trust unit.

For each trust unit that was allocated to an electing holder, the number of shares of Newfield common stock that such holder would otherwise have received in the merger was reduced by .00054 of one share.

Newfield expects that the certificates for the trust units will be mailed on or about December 11, 2002.

Newfield Exploration is an independent crude oil and natural gas exploration and production company. The Company has a solid asset base of producing properties and exploration and development drilling opportunities in the Gulf of Mexico, along the U.S. Onshore Gulf Coast, in the Anadarko and Permian Basins, offshore Australia and in China's Bohai Bay. Newfield balances its drilling program with acquisitions in select areas in the U.S. and overseas.

     For information, contact:
     Steve Campbell
     (281) 847-6081

                     

SOURCE Newfield Exploration Company

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