HOUSTON, June 29 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) announced today that it has signed an agreement to purchase Gulf Australia Resources Limited, an Australian corporation, from a subsidiary of Gulf Canada Resources Limited.
The principal assets of Gulf Australia and its subsidiaries include a 50% working interest in the Jabiru and Challis fields with current gross daily production of approximately 13,000 barrels of oil and interests in 10 exploration licenses, primarily located in the Timor Sea, offshore northern Australia. The Timor Sea exploration and production licenses cover approximately 2.7 million acres (1.2 million net acres) and about 40% of the acreage is covered with 3-D data. Newfield expects to participate in seven exploratory tests on the acreage during 2000 and 2001.
"This transaction has all the elements Newfield has been looking for in an international acquisition -- producing assets, exploitation potential and exploration upside defined by 3-D seismic," commented Joe B. Foster, Newfield's Chairman and Chief Executive Officer. "The acquisition will provide additional longer term growth opportunities for Newfield and complements our activities in our core Gulf Coast area."
Newfield was founded in 1989. Its principal operations are in the Gulf of Mexico and onshore South Texas and Louisiana. During 1998, Newfield was among the ten largest operators of production and most active drillers on the Gulf of Mexico outer continental shelf.
Newfield explores, develops and acquires oil and gas properties principally in the Gulf of Mexico.
Certain of the statements set forth in this press release regarding production and operating activities 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, including drilling results, oil and gas prices, industry conditions, the prices of goods and services, the availability of drilling rigs and other support services and the availability of capital resources. 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 more information contact: 363 N. Sam Houston Pkwy. E., Ste. 2020 James P. Ulm, II Houston, TX 77060 (281) 847-6000 (www.newfld.com)
SOURCE Newfield Exploration Company
Web site: http: //www.newfld.com
CONTACT: James P. Ulm, II of Newfield Exploration Company, 281-847-6000