HOUSTON, Oct. 8 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today expressed confidence in attaining its previously established 1998 oil and gas production goal of 87 Bcfe (billion cubic feet of natural gas equivalent) despite curtailments associated with Gulf of Mexico tropical storm and hurricane activity. Collectively, Tropical Storms Frances and Hermine and Hurricanes Earl and Georges caused interruptions in drilling and producing activities during all or part of twenty-five days from mid-August to early October. Newfield estimates that production for the third quarter of 1998 will be approximately 2 1/2 Bcfe lower than what otherwise would have been produced without the storm related interruptions.
"In the absence of further storm disruptions, we can adjust our activities and rely on some newly established production to meet our previously announced production goals," said Joe B. Foster, Chairman and CEO of Newfield. "The production volumes weren't lost, they were just deferred. But the fixed costs of operating platforms, together with expenses related to personnel evacuations and restoration of production will result in higher unit costs for the third quarter."
Newfield also stated that it sustained no significant well, platform or facility damage related to the tropical storms.
Newfield explores, develops and acquires oil and gas properties principally in the Gulf of Mexico.
Certain of the statements set forth in this press release regarding
production targets and operating expenses and activities are forward looking
and are based upon assumptions and anticipated results that are subject to
numerous uncertainties. 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 and the availability
of capital resources. In addition, the drilling of oil and gas wells and the
production of hydrocarbons are subject to governmental regulations and
SOURCE Newfield Exploration Company
Web site: http: //www.newfld.com
CONTACT: James P. Ulm, II, of Newfield Exploration Company, 281-847-6000