HOUSTON, July 26 /PRNewswire-FirstCall/ -- Newfield Exploration Company (NYSE: NFX) today announced a deep shelf discovery at West Cameron 77, located about 10 miles offshore Louisiana in about 40 feet of water.
The West Cameron 77 #1 well encountered approximately 120' of net gas pay in two zones between 16,800' - 17,600'. The well was deepened to 19,603' (18,500' vertical depth) and encountered an additional zone that appears to have possible pay over a large gross interval. This zone will be evaluated during the completion stage. Newfield is evaluating development plans for the discovery and expects first production from the field in early 2005. Depending on the depths of the pay sections completed in this wellbore, the field will qualify for 15-25 Bcf of royalty relief under the Minerals Management Service's rules.
Newfield has drilled 12 successful deep shelf exploration wells out of 19 attempts to date. The Company expects to spud additional deep shelf tests in the remainder of 2004.
Newfield operates the West Cameron 77 discovery with a 45% working interest in a joint development area covering portions of West Cameron 77 and West Cameron 96, prior to payout. After payout, Newfield's interest, subject to a 25% back in by Seneca Resources Corporation, will be 33.75%. The remaining interest in the discovery is owned by BHP Billiton (30.95%), Houston Exploration (13.75%) and Ridgewood Energy Corp. (10.3%).
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 and select international ventures.
**Certain of the statements set forth in this release regarding estimated or anticipated timing of first production and development plans 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, labor conditions and other factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2003. 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 firstname.lastname@example.org
SOURCE Newfield Exploration Company -0- 07/26/2004 /CONTACT: Steve Campbell of Newfield Exploration Company, +1-281-847-6081, or email@example.com / /Web site: http://www.newfld.com / (NFX) CO: Newfield Exploration Company; Seneca Resources Corporation; BHP Billiton; Houston Exploration; Ridgewood Energy Corp. ST: Texas IN: OIL SU: DSC CT-CD -- DAM047 -- 2302 07/26/2004 16:19 EDT http://www.prnewswire.com