THE WOODLANDS, Texas,
Dec. 5, 2011 /PRNewswire/ --
Newfield Exploration Company (NYSE: NFX) today announced the
signing of a crude oil supply agreement with Tesoro Corporation to
provide 18,000 barrels per day of supply capacity at Tesoro's
refinery in Salt Lake City, Utah.
The new agreement spans a seven-year period, with commitments
commencing in 2013, and secures additional supply capacity for
Newfield's planned oil growth in the Uinta Basin. The oil price
differential associated with this agreement is not materially
different than Newfield's current supply contracts in the
basin.
"Our centerpiece oil asset is the Uinta Basin and today's
agreement is a significant step towards securing the necessary oil
refining capacity to support our future growth plans," said
Lee K. Boothby, Newfield's Chairman,
President and CEO. "We've enjoyed a mutually-beneficial
relationship with Tesoro since entering the region and look forward
to growing our businesses together into the next decade."
Newfield has been active in the Uinta Basin since 2004. Multiple
oil-productive geologic targets exist across the acreage and an
active drilling campaign is underway to develop the more than 6,000
potential locations on the acreage.
In mid-2011, Newfield disclosed initial results from two new
Central Basin oil developments – the Uteland Butte and the Wastach.
Newfield is planning to test multiple horizontal intervals in 2012.
The Company has been increasing its rig count and expects to run at
least eight rigs in the Uinta Basin in 2012, up from an historic
five-rig program.
The Company sells its crude oil from the Uinta Basin to multiple
Salt Lake City-area refiners and
continues to work with each to secure additional refining capacity
to meet future growth plans from the region.
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, Appalachia and the
Gulf of Mexico. The Company has
international operations in Malaysia and China.
**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, 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 of refining capacity for
the crude oil Newfield produces from its Monument Butte field in
Utah, the availability and cost of
capital resources, new regulations or changes in tax legislation,
labor conditions and severe weather conditions (such as
hurricanes). In addition, the drilling of oil and gas wells and the
production of hydrocarbons are subject to numerous governmental
regulations and operating risks. Other factors that could impact
forward-looking statements are described in "Risk Factors" in
Newfield's 2010 Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q, 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 information,
contact:
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Investor Relations:
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Steve Campbell (281)
210-5200
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Danny Aguirre (281)
210-5203
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Media Relations:
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Keith Schmidt (281)
210-5202
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SOURCE Newfield Exploration Company