THE WOODLANDS, Texas,
Jan. 4, 2012 /PRNewswire/ --
Newfield Exploration Company (NYSE: NFX) today announced the
signing of a crude oil supply agreement with HollyFrontier
Corporation to provide 20,000 barrels per day of supply capacity at
HollyFrontier's Woods Cross, Utah,
refinery. The new agreement spans a 10-year period with commitments
commencing in 2014. This is the second of two recent agreements by
Newfield to secure approximately 40,000 BOPD of capacity for
the Company'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.
"We are planning to significantly increase our drilling
activities in the Uinta Basin – both in our proven shallow oil
developments and in new and deeper oil horizons," said Lee K. Boothby, Newfield's Chairman, President
and CEO. "This new agreement with HollyFrontier helps ensure that
our oil growth will be matched by capacity expansions in the Uinta
Basin. We are growing an important source of domestic oil volumes
and both Newfield and HollyFrontier will benefit throughout the
next decade."
In addition to the new arrangement with HollyFrontier, Newfield
today extended an existing arrangement with Big West Oil to add up
to 3,000 BOPD of oil sales through the first quarter of 2014.
Newfield has been active in the Uinta Basin since 2004. Multiple
oil-productive geologic targets exist across the Company's acreage
and an active drilling campaign is underway to develop more than
6,000 potential locations. The Company expects to run at least
eight rigs in the Uinta Basin in 2012, up from a historic five-rig
program.
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