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Newfield Closes Lariat Acquisition

HOUSTON, Jan. 23 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced the closing of its acquisition of Lariat Petroleum. The purchase price at closing was approximately $333 million, including the assumption of Lariat's debt and certain other obligations. The transaction is expected to be immediately accretive on a per share basis to earnings, cash flow, production and reserves.

The purchase price consisted of approximately 1.9 million shares of Newfield stock with a value, based on the closing price on January 22, of $68 million and $265 million in cash. Newfield financed the cash portion of the purchase price under a new credit facility arranged by J.P. Morgan, a division of Chase Securities Inc., Banc of America Securities, LLC and Bank of Montreal. The transaction will be accounted for as a purchase.

Lariat is a private, independent exploration and production company primarily focused in the Anadarko Basin of Oklahoma. As of June 30, 2000, Lariat had a proved reserve base of 256 billion cubic feet equivalent (Bcfe). Approximately 75% of Lariat's proved reserves are natural gas and 90% are located in Oklahoma.

The acquisition provides a new focus area for Newfield, adding natural gas assets with a reserve life index of about 11 years. With the addition of Lariat, about 40% of Newfield's proved reserves are located onshore U.S.

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 and operations primarily in the Gulf of Mexico, the Anadarko Basin of Oklahoma, along the U.S. Gulf Coast and offshore Australia. Newfield balances its drilling program with acquisitions in select areas in the U.S. and overseas.

** Certain of the statements set forth in this news release regarding estimated reserves 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, 1999. 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
     www.newfld.com                                  sccampbell@newfld.com

SOURCE Newfield Exploration Company
Web site: http: //www.newfld.com
CONTACT: Steve Campbell of Newfield Exploration Company, 281-847-6081, or sccampbell@newfld.com

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