Newfield Exploration Joins With Hess Corporation in Marcellus Shale Play
October 14 2009 - 7:30AM
PR Newswire (US)
HOUSTON, Oct. 14 /PRNewswire-FirstCall/ -- Newfield Exploration
Company (NYSE:NFX) and Hess Corporation (NYSE:HES) today announced
the signing of a joint exploration agreement in the Marcellus Shale
play. The agreement covers up to 140,000 gross acres primarily in
Susquehanna and Wayne Counties, Pennsylvania. Newfield will operate
the new venture with each company having a 50 percent interest.
"Today marks our entry into the Marcellus Shale - likely to become
one of our nation's largest natural gas resource plays," said Lee
K. Boothby, Newfield President and CEO. "Today, with substantially
all of our acreage held-by-production in the Woodford Shale, it's a
great time for us to enter an important new focus area and apply
our expertise to a similar play of scale. We expect to build a
business here, just as we have done in the Mid-Continent and the
Rocky Mountains. The Newfield family prides itself in being a good
corporate citizen in the areas where we operate." Newfield entered
the Woodford Shale in 2003 and assembled 165,000 net acres. The
Company has drilled approximately 300 horizontal wells and has
current gross operated production capacity of nearly 300 MMcfe/d.
The 2009 portion of Newfield's Marcellus Shale activities will be
funded within the Company's existing $1.45 billion capital budget.
Drilling operations are not expected to commence until 2010.
"Entering the Marcellus Shale builds on the unconventional
expertise Hess has in North Dakota's Bakken play," said Greg Hill,
Hess President of Worldwide Exploration and Production. "Hess has
an established technical capability in horizontal, multi-stage
fractured wells and we have a reputation for sound environmental
operating practices. We are pleased to partner with Newfield in
this venture and look forward to a project that may bring economic
development to the area and natural gas to the larger East Coast
market." The terms of this transaction are dependent upon Newfield
and Hess finalizing additional agreements over the next few weeks.
Newfield Exploration Company is an independent crude oil and
natural gas exploration and production company. The Company relies
on a proven growth strategy of growing reserves through an active
drilling program and select acquisitions. Newfield's domestic areas
of operation include the Mid-Continent, the Rocky Mountains,
onshore Texas and the Gulf of Mexico. The Company has international
operations in Malaysia and China. Hess Corporation, with
headquarters in New York, is a global integrated energy company
engaged in the exploration, production, purchase, transportation
and sale of crude oil and natural gas, as well as the production
and sale of refined petroleum, natural gas and electricity
products. More information on Hess Corporation is available at
http://www.hess.com/. **This release contains forward-looking
information. All information other than historical facts included
in this release, such as information regarding estimated or
anticipated capital expenditures, drilling and development plans
and the timing of activities, 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, including 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 and cost
of capital resources, labor conditions and severe weather
conditions. In addition, the drilling of oil and gas wells and the
production of hydrocarbons are subject to governmental regulations
and operating risks. For Newfield Exploration Company information,
contact: Investor Relations: Steve Campbell (281) 847-6081 Media
Relations: Keith Schmidt (281) 674-2650 Email: For Hess Corporation
information, contact: Investor Contact: Jay Wilson (212) 536-8940
Media Contact: Jon Pepper (212) 536-8550 DATASOURCE: Newfield
Exploration Company CONTACT: Investors, Steve Campbell,
+1-281-847-6081, or Media, Keith Schmidt, +1-281-674-2650, both of
Newfield Exploration Company, ; or Investors, Jay Wilson,
+1-212-536-8940, or Media, Jon Pepper, +1-212-536-8550, both of
Hess Corporation Web Site: http://www.newfield.com/
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