THE WOODLANDS, Texas,
July 29, 2014 /PRNewswire/
-- Newfield Exploration Company (NYSE: NFX) today
announced the signing of a $588
million purchase and sale agreement for its Granite Wash
assets to Oklahoma City-based
Templar Energy LLC (operating through Le Norman Operating LLC). The
sale will have an effective date of July 1,
2014, and is expected to close in the third quarter of
2014.
Newfield's assets in the Granite Wash include approximately
42,000 net acres and current net daily production is nearly 65
MMcfe/d, of which approximately 60% is natural gas. Proved net
reserves at year-end 2013 were approximately 38 MMBOE. Newfield
intends to use the proceeds from this sale to call its
71/8% Senior Subordinated Notes due in
2018.
"Today's announcement is consistent with the underlying
objectives in our three-year plan," said Larry Massaro, Newfield Executive Vice President
and CFO. "Today's sale further demonstrates our willingness to
monetize non-strategic assets, high-grade our portfolio, accelerate
our domestic growth programs and strengthen our balance sheet. Our
future investments will be in high-return, scalable resource plays
where we can drive value through repeatable application of our core
competencies in drilling and completions."
J.P. Morgan Securities and Wells Fargo Securities acted as
Newfield's financial advisors on this transaction.
Newfield also disclosed that the Company is now completing its
planned repairs to its Pearl facility (jacket), located in the
South China Sea. The topsides, located near Hong Kong, were recently loaded on a barge and
installation remains on schedule, pending weather conditions over
the next month. First oil is expected in the fourth quarter of 2014
with gross facility capacity of 40,000 BOPD gross. The Company
intends to monetize its business in China.
Newfield Exploration Company is an independent energy company
engaged in the exploration, development and production of crude
oil, natural gas and natural gas liquids. We are focused on North
American resource plays and our principal areas of operation
include the Mid-Continent, the Rocky Mountains and onshore
Texas.
**This release contains forward-looking information. All
information other than historical facts included in this release,
such as information regarding estimated or anticipated drilling
plans, planned capital expenditures, and estimated production, is
forward-looking information. Although Newfield believes that these
expectations are reasonable, this information is based upon
assumptions and anticipated results that are subject to numerous
uncertainties and risks. Actual results may vary significantly from
those anticipated due to many factors. Factors that could impact
forward-looking statements are described in "Risk Factors" in
Newfield's 2013 Annual Report on Form 10-K and other subsequent
public filings with the Securities and Exchange Commission, which
can be found at www.sec.gov. Unpredictable or unknown factors, not
discussed in this press release, could also have material adverse
effects on forward-looking statements. Readers are cautioned not to
place undue reliance on forward-looking statements, which speak
only as of the date hereof. Unless legally required, Newfield
undertakes no obligation to publicly update or revise any
forward-looking statements.
For additional information, please contact Newfield's Investor
Relations department.
Phone: 281-210-5321 Email: info@newfield.com
SOURCE Newfield Exploration Company