The B-14 well encountered 1,800 feet of gross column and 1,585 feet of net natural gas pay in the main carbonate objective. A drill stem test was recently conducted, which confirmed commerciality of the reservoir. Newfield estimates that
The B-14 discovery is located less than three miles from Newfield's first pinnacle reef gas discovery, B-15, also located on Block SK 310 in approximately 250 feet of water. Recoverable reserves on this discovery are estimated at approximately 265 Bcf and will be developed in conjunction with the B-14 discovery.
"This is the largest conventional exploratory success that Newfield has made in its 25-year history," said
Block SK 310 covers approximately 1.1 million acres. Newfield has identified additional prospects on the contract area with multi-Tcf of remaining gas resource potential. Newfield has committed to drill one remaining exploration well (B-17 prospect) on Block SK 310.
Boothby said, "In December 2012, we signed a new PSC for Block SK 408 and completed farming into Block SK 319. Both PSCs are in offshore
Block SK 408 covers 1.1 million acres in water depths ranging from 200 – 400 feet. There have been 16 discoveries in the block so far with existing infrastructure and production hubs located less than 10 miles from dozens of potential prospects identified to date by Newfield. The Company has a 10-well commitment on the block over a three-year initial exploration period. Newfield will operate the block with a 40% interest. Other partners include Shell (30%) and PETRONAS Carigali (30%).
Block SK 319 covers approximately 580,000 acres and is located adjacent to Block SK 408. Water depths are 300 feet or less. Newfield has identified several exploration prospects in the block and the Company has a five-well commitment over an initial three-year exploration period. Block SK 319 is operated by Shell (50%), and Newfield and PETRONAS Carigali each hold a 25% interest.
Company Provides Update on Process to Explore "Strategic Alternatives" for its International Businesses
In February, Newfield announced that its Board of Directors authorized the evaluation of strategic alternatives for the Company's international businesses, which consist of offshore developments and related projects in
Newfield's actions related to its international businesses at year-end 2012 now allow the Company to move cash from its international businesses to the U.S. without significant U.S. cash tax implications. Newfield's 2013 domestic federal taxes remain substantially all deferred. However, because of the Company's domestic net operating loss carry-forward position, Newfield is not able to recognize tax benefits from foreign tax credits.
As a result, the Company expects an effective book tax rate in 2013 of 55 – 65%. At current oil prices, Newfield's full-year 2013 international cash income taxes are expected to be
**This release contains forward-looking information. All information other than historical facts included in this release, such as information regarding estimated or anticipated drilling plans, planned capital expenditures, and estimated production, is forward-looking information. Although Newfield believes that these expectations are reasonable, this information is based upon assumptions and anticipated results that are subject to numerous uncertainties and risks. 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, the availability of refining capacity for the crude oil Newfield produces in the
For additional information, please contact Newfield's Investor Relations department.