HOUSTON, Dec 12, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Newfield Exploration Company (NYSE: NFX) today announced the signing of a new Production Sharing Contract for Block 17/08 in the Pearl River Mouth Basin of the South China Sea. The block covers 7,108 square kilometers (approximately 1.8 million acres) and is located 180 kilometers offshore Hong Kong. Newfield will have a 100% working interest in the block during the exploration phase. The Chinese National Offshore Oil Corporation reserves the right to back-in to any development with a 51% interest.
Newfield plans to reprocess existing 2-D and 3-D seismic data and conduct a 3-D seismic survey over an undeveloped discovery on Block 17/08. The seismic analysis will be used to select drilling targets. Newfield is committed to drill wildcat wells during the exploration period; with the first well to be drilled during the next three years.
In addition, Newfield signed a Geophysical Survey Agreement on adjacent Block 16/05, which covers 2,064 square kilometers (approximately 510,000 acres). Newfield plans to acquire new 3-D seismic data to help identify targets on this acreage. Newfield also will have a 100% interest in this block, prior to any back-in by CNOOC.
Newfield has been active in China since 1997 and is currently participating in the development of two oil fields in Bohai Bay -- the CFD 11-6/12-1 and 12-1 South fields. The fields are operated by Kerr McGee Corporation.
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 domestic areas of operation include the Gulf of Mexico, the U.S. onshore Gulf Coast, the Anadarko and Arkoma Basins of the Mid-Continent and the Uinta Basin of the Rocky Mountains. The Company has international exploration and development projects underway in Malaysia, the U.K. North Sea and China.
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SOURCE Newfield Exploration Company
Steve Campbell of Newfield Exploration Company, +1-281-847-6081, or firstname.lastname@example.org