HOUSTON, Feb. 7 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced signing a purchase and sale agreement to acquire interests in producing gas assets in south Texas from an undisclosed seller for $142 million. The producing gas fields are located in Hidalgo, Brooks and Kenedy Counties. The effective date of the transaction is January 1, 2000 and the deal is expected to close in late February.
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 about 35 MMcfe/d net to Newfield. The Company will operate two of the three fields. Newfield has identified several locations on the acquired acreage that will be drilled in 2000. The acquisition of certain of the interests is subject to the waiver of preferential purchase rights.
"For some time, we have been looking for the right acquisition that would grow our South Texas focus area. This deal will give us a significant increase in our 2000 gas production and provide cash flow to help fund our growing onshore U.S. Gulf Coast drilling program," said David A. Trice, President and Chief Executive Officer.
The acquisition will be funded with cash and borrowings under the Company's revolving credit facility. After the transaction closes, the Company estimates it will have about $100 million of unused borrowing capacity.
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 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.
For information, contact:
SOURCE Newfield Exploration Company
Web site: http: //www.newfld.com
CONTACT: Steve Campbell of Newfield Exploration Company, 281-847-6081