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Newfield Provides Update on Ship Shoal 354 Blowout

HOUSTON, Sept. 13 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) provided an update this morning on its well control efforts at the Company's Ship Shoal Block 354 production platform. The A-2 well blowout continued to burn and well capping operations are underway.

Well Control and Spill Containment

Newfield is working closely with the regulatory authorities on the plan of action. Newfield is coordinating a well capping program with Boots and Coots. A parallel effort of planning a relief well to terminate the gas flow downhole in the A-2 well has also been initiated.

At present, a light, silvery sheen extends from the platform and poses no threat to the U.S. shoreline. The Company and the Coast Guard Marine Safety Office (MSO) Morgan City believe the sheen is non-dispersible and non-recoverable. The condensate causing the sheen has an API gravity of 46 degrees and is expected to evaporate with no significant pollution or environmental impact. However, the Company has two skimming boats and booms on location should they be needed. MSO Morgan City personnel are conducting periodic fly-overs to monitor the situation.

Production Impact/Liability

At the time of the incident, the Ship Shoal 354 platform was producing about 6 million cubic feet per day of gas and 1,400 BCPD (gross). Newfield's net revenue interest in the platform is 40 percent. The Company estimates that lost production from the platform for the remainder of 1999 will not impact the Company's production target of 111 billion cubic feet equivalent (Bcfe) for the year. Damage to Company assets is covered under Newfield's insurance arrangements.

Newfield also has business interruption insurance and any extensive shut-in of the platform is not expected to have a material impact on year 2000 cash flow projections. Net production for 2000 was anticipated to be approximately 3 Bcfe.

Background

On Sunday, Newfield announced that at approximately 5:30 a.m., September 12, the A-2 gas well blowout ignited at the Ship Shoal Block 354 production platform. The platform is located approximately 140 miles south of New Orleans, LA in 463 feet of water. The initial blowout occurred at approximately 3:45 p.m. on Thursday, September 9, during a workover operation on the well.

Newfield will provide additional updates as information becomes available.

Newfield explores, develops and acquires oil and gas properties principally in the Gulf of Mexico and has operating activities in the onshore Gulf Coast and offshore Australia and China.

For more information contact Stephen C. Campbell of Newfield Exploration Company, 281-847-6081.
SOURCE Newfield Exploration Company
Web site: http: //www.newfld.com
CONTACT: Stephen C. Campbell of Newfield Exploration Company, 281-847-6081

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