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Newfield Closes South Texas Acquisition

HOUSTON, Feb. 28 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) closed its recently announced acquisition of three producing gas fields in south Texas. The purchase price at closing was $141.4 million. The effective date of the transaction is January 1, 2000.

The producing gas fields are located in Hidalgo, Brooks and Kenedy Counties. About 90 percent of the acquired reserves are natural gas. The three fields are currently producing about 75 million cubic feet equivalent per day (MMcfe/d) gross, or 35 MMcfe/d net to Newfield. The Company operates two of the three fields.

The properties have low unit of production lease operating expenses, less than $0.20 per thousand cubic feet equivalent of gas, including production taxes. The acquisition is expected to be immediately accretive to earnings and cash flow. Newfield has identified drilling opportunities on the acquired acreage and expects to drill 10-12 wells on the acreage over the next 24 months.

Newfield expects the acquisition to add about 10 billion cubic feet equivalent (Bcfe) to this year's production volumes, bringing 2000 estimated production to about 139 Bcfe, an increase of more than 20 percent over 1999.

The acquisition was funded through cash and borrowings under the Company's revolving credit facility. The Company estimates its remaining borrowing capacity at about $100 million.

Newfield Exploration is an independent natural gas and crude oil exploration and production company. The Company has a solid asset base of producing properties and exploration and development drilling opportunities primarily in the Gulf of Mexico with operations along the U.S. Gulf Coast and offshore Australia. Newfield balances its drilling program with select acquisitions in core operating areas in the U.S. and overseas.

     Newfield Exploration Company                   For information, contact:
     363 N. Sam Houston Parkway East, Ste. 2020     Steve Campbell
     Houston, TX 77060                              (281) 847-6081

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

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