HOUSTON, Dec. 13 /PRNewswire-FirstCall/ -- Newfield Exploration Company (NYSE: NFX) today provided a progress report on the resumption of its production in the Gulf of Mexico following 2005 storms and hurricanes. Newfield estimates that the storms will result in the deferral of approximately 22 billion cubic feet equivalent (Bcfe) of anticipated 2005 production. As a result, Newfield now expects that full-year 2005 production will total approximately 242 Bcfe.
David A. Trice, Newfield Chairman, President and CEO, commented: "Recovery from Hurricane Rita has been much slower than we originally projected with most of the delays relating to pipeline and onshore processing plant damage. In addition, the storm substantially delayed our drilling program which would have resulted in additional production during this period from new wells and recompletions. We are currently producing 200 MMcfe/d from the Gulf of Mexico. We estimate that Gulf production will reach 250-270 MMcfe/d by the end of the first quarter of 2006 and 270-300 MMcfe/d by mid-year 2006. These estimates depend upon timely repairs to third party facilities."
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.
**The statements set forth in this release regarding estimated production volumes and timing 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. Newfield's ability to produce oil and gas from the Gulf of Mexico is dependent on infrastructure (such as host platforms, pipelines and onshore processing facilities) owned by third parties. Much of this infrastructure was damaged by Hurricanes Katrina and Rita. In many cases, Newfield is uncertain of the extent of the damages. As a result, it is difficult to predict when production will be permitted to resume. In addition, the storms have caused increased demand for drilling rigs and support services, which has resulted in delays in planned activities. Other factors that may cause actual production to vary significantly from anticipated production include the availability of drilling rigs and other support services, drilling results, oil and gas prices, the prices of goods and services, delays in the construction of infrastructure, delays in obtaining governmental approvals, the availability of capital resources, labor conditions and other factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2004. In addition, the drilling of oil and gas wells and the production of hydrocarbons are subject to governmental regulations and operating risks.
Newfield Exploration Company For information, contact: 363 N. Sam Houston Parkway East, Ste. 2020 Steve Campbell Houston, TX 77060 (281) 847-6081 http://www.newfld.com firstname.lastname@example.org
SOURCE Newfield Exploration Company -0- 12/13/2005 /CONTACT: Steve Campbell of Newfield Exploration Company, +1-281-847-6081, or email@example.com / /Web site: http://www.newfld.com / (NFX) CO: Newfield Exploration Company ST: Texas IN: OIL SU: AH-AW -- DATU026 -- 6016 12/13/2005 11:49 EST http://www.prnewswire.com