HOUSTON, Oct 7, 2004 /PRNewswire-FirstCall via COMTEX/ -- Newfield Exploration Company (NYSE: NFX) and BP Exploration Operating Company Limited signed an agreement to explore and develop the remaining hydrocarbon potential surrounding BP's operated West Sole Field in the Southern Gas Basin of the North Sea. Newfield expects to spud the first exploratory well in early 2005 and has an option to drill two additional wells to retain interest in the acreage under this agreement.
BP discovered the West Sole Field, located on Block 48/6, in 1965. The agreement covers segments of Blocks 47/10, 48/1c, 48/6, 48/7a and 47/7b, excluding the West Sole field area producing fields, which are currently producing around 100 MMcfe/d with cumulative production of 1.8 trillion cubic feet of gas equivalent.
Newfield has identified several attractive prospects on the 125,000-acre exploration area around West Sole. The first prospect scheduled to be drilled is called Newark, located on Block 47/10. Under terms of the agreement, Newfield has agreed to pay 100% of the drilling and development costs for a 65% working interest. Newfield will recover its costs through production.
Tim Summers, Director & Business Unit Leader of BP's North Sea business, said, "This deal builds on BP's track record of stimulating industry drilling activity through proactive business development. The agreement attracts further investment into the UK Southern North Sea, encourages a new entrant to the UKCS and helps to maximise the hydrocarbon recovery from one of BP's core areas."
Newfield opened an office in London in 2002. Since that time, the Company has been actively participating in licensing rounds, developing prospects and seeking creative deals. Newfield is currently drilling its Cumbria Prospect, located on Block 49/4b, under a turnkey contract with ADTI, a division of GSF. Newfield operates Cumbria with a 100% working interest. Results from the well are expected in about two weeks.
Following the drilling of Cumbria, Newfield expects to drill an appraisal well on its Grove discovery, located on Block 49/10a. This acreage was part of a July 2004 transaction in which Newfield acquired nearly 100,000 net acres in the Southern Gas Basin from Shell U.K. Limited and ESSO Exploration & Production UK Limited (an affiliate of ExxonMobil). The acreage included Blocks 49/8a and 49/9a (excluding the Cutter Field), 49/8b, 49/9c, 49/10a and 49/13b. Grove is expected to spud in the fourth quarter of 2004 and also will be drilled under a turnkey contract with ADTI.
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 areas of operation include the Gulf of Mexico, the U.S. onshore Gulf Coast, the Anadarko and Arkoma Basins, the Uinta Basin of the Rocky Mountains, offshore Malaysia and other select international ventures.
**The statements set forth in this release regarding drilling plans 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 the availability of service companies for repairs, 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 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, 2003. 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 email@example.com
SOURCE Newfield Exploration Company
Steve Campbell of Newfield Exploration Company, +1-281-847-6081, or firstname.lastname@example.org