Newfield Provides Update on Uinta Basin Development Program
New horizontal resource play adds nearly 300 MMBO equivalent of net resource potential; New oil plays increase net undeveloped resource potential to approximately 700 MMBO equivalent; Company to increase operated rig count to at least eight rigs in coming months; Uinta Basin annual production growth rate expected to nearly double; Drilling inventory increased to more than 6,000 oil locations 07/20 03:40 PM
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HOUSTON, July 20, 2011 /PRNewswire/ -- Newfield Exploration Company (NFX:$71.6000,$0.2700,0.38%) today provided a comprehensive update on its Uinta Basin oil development programs. The update follows the May 2011 closing of two acreage acquisitions for approximately $300 million. Combined, the two transactions added approximately 70,000 net acres. Newfield today owns interest in approximately 250,000 net acres in the Uinta Basin where its average working interest is more than 70%. Multiple oil-productive geologic targets exist across the acreage and an active drilling campaign is underway.
"We have a proven growth history in the Uinta Basin," said Lee K. Boothby, Newfield's Chairman, President and CEO. "We have been growing our oil production and reserves in the region since our entry in 2004. It's clearly an oil play where we have a competitive advantage. We drill 'best in class' wells, operate substantially all of our operations and have the personnel in place today to increase our activities cost effectively. We plan to aggressively develop our 6,000-plus well inventory of oil locations."
"We are excited about the potential of our new Uteland Butte horizontal oil play, as well as the early successes in our Wasatch development. These two new oil plays provide some of the highest return projects in our drilling portfolio today. We will optimize our drilling programs and continue to grow our domestic oil production in 2012. Over the last two years, we have effectively demonstrated our ability to shift people and capital to projects that yield both growth and returns."
For 2012, Newfield plans to increase its operated rig count in the Uinta Basin from an historic five-rig count to at least eight rigs. The Company expects 2012 Uinta Basin daily production will grow at least 25% over 2011. The increased play options combined with fewer permitting constraints will allow Newfield to significantly increase its future growth in production and reserves from the basin.
The Company's net resource potential in the Uinta is estimated today at more than 700 million barrels of oil (MMBO) equivalent. In addition to the shallow Green River oil play, Newfield today provided results from recent drilling in deeper oil objectives prevalent throughout the Company's acreage. A table summarizing the plays and their net resource potential is included within this release. Newfield also has made available maps and additional information through its @NFX publication, which can be found on the Company's website at www.newfield.com/pdf/uintaupdate.pdf.
Uteland Butte
Recent transactions have added acreage north of the Company's traditional area of drilling -- Monument Butte. This area is referred to as the "Central Basin." Uteland Butte is a new horizontal oil play being developed by Newfield from 6,000' – 9,000' (total vertical depth, or TVD) and is prevalent across Monument Butte and the Central Basin – or approximately 80% of Newfield's total acreage in the basin. Portions of the play are geopressured and are expected to result in higher production rates and estimated ultimate recovery (EUR).
During the last year, Newfield has drilled six horizontal wells in the play. All of the wells to date have been drilled in the Monument Butte field. Initial gross 24-hour production rates from the Company's most recent wells have averaged 24-hour initial production (IP) of approximately 500 barrels of oil equivalent per day (BOEPD), or more than six times the IP rate of a traditional, vertical Green River well.
Based on an estimated inventory of at least 1,800 locations (160-acre spacing), Newfield's net resource potential associated with the Uteland Butte formation is nearly 300 MMBO equivalent. The Company estimates that the wells will have an average gross EUR of approximately 300,000 BO equivalent and can be drilled and completed on average for approximately $2.8 million.
Newfield plans to complete an additional four horizontal wells in the Uteland Butte play in the second half of 2011. In 2012, the Company plans to drill more than 30 horizontal wells in the play.
Wasatch
The Wasatch formation is being developed throughout the Central Basin and is prospective at depths of 9,000' – 11,000' TVD. This is a southerly extension of the giant Altamont Bluebell field which has cumulative production to date of more than 400 MMBO equivalent. Over the last year, eight vertical wells have been drilled on Newfield's acreage. Recent vertical wells have average gross 24-hour IP rates of more than 1,000 BOEPD.
Newfield estimates that the net resource potential for this play is more than 45 MMBO equivalent. To date, the Company has identified approximately 380 locations (320-acre spacing) with expected average EURs of more than 260,000 BO equivalent. Gross completed well costs vary by geologic depth and are estimated to range from $1.2 – $3.3 million. The Company believes significant upside exists with future application of horizontal drilling and completion technology and through increased drilling density, which could double the expected net resource potential.
The Company expects to complete an additional 25 wells in the Wasatch in the second half of 2011. In 2012, Newfield expects to drill at least 50 wells in this play.
Green River
Newfield has been actively developing the shallow Green River formation since entering the Uinta Basin in 2004. Approximately 2,100 wells have been drilled to date on the Company's acreage. Newfield's Green River oil play is economically productive across at least 165,000 net acres.
The Company estimates that more than 4,000 undrilled locations remain to ultimately develop the Monument Butte field on 20-acre spacing and the Central Basin acreage on 40-acre spacing. Substantially all of the Company's acreage at Monument Butte is located on acreage under Bureau of Land Management jurisdiction. At the current pace of drilling activity, this equates to more than a 10-year inventory. To date, Newfield has drilled more than 300 wells on the Central Basin acreage and, with additional data, believes the area could be prospective for future waterflood and 20-acre development. Current resource estimates do not include the potential for 20-acre spacing or secondary recovery in the Central Basin.
Newfield estimates that the Green River formation has net remaining resource potential of approximately 360 MMBO equivalent (includes developed and undeveloped waterflood potential only in Monument Butte). At year-end 2010, Newfield had proved reserves in the Green River formation of approximately 140 MMBO equivalent.
Gross production from the Uinta Basin has grown from approximately 7,000 BOPD to approximately 22,000 BOPD today. Green River wells are today being drilled and completed in four to five days for approximately $930,000 gross. The wells have a gross EUR of approximately 75,000 BO equivalent. Since the Company's 2004 entry into the Monument Butte field, expected recovery of oil in place has increased from about eight percent to 16% or more. Newfield expects to drill about 300 wells in the shallow Green River in 2011. For 2012, Newfield expects to drill 250 – 300 wells as additional resources are allocated toward the new Uteland Butte and Wasatch plays.
Infrastructure Investments
Newfield is investing approximately $75 million into field infrastructure projects in 2011 – nearly matching the Company's cumulative investment in infrastructure from 2004-10. As development drilling has moved northeast and into deeper geologic horizons, the gas:oil ratio has increased. As a result, additional compression and enhanced gathering infrastructure is now required to accommodate the increased gas production. Once fully operational, the new facilities will allow for increased oil production from these areas. The Company expects to invest about $100 million into infrastructure projects in 2012 to accommodate long-term oil growth objectives from the Uinta Basin.
Uinta Basin Resource Potential
Play Type
Net Acres
Locations
Avg.
EUR
MBOE
Avg. Well Cost ($MM)
Avg. WI%
Avg.
NRI %
8/8ths
Net Resource
Potential
MMBOE
Green River
165,000
>4,000
75
$0.93
73%
82%
360*
Uteland Butte
200,000
>1,800
300
$2.8
67%
81%
300
Wasatch
70,000
>380
>260
$2.6
58%
78%
>45
Deep Gas
250,000
>3,000
TBD
TBD
~70%
~80%
>10 TCFE
*Includes developed and undeveloped water flood potential
Newfield Exploration Company (NFX:$71.6000,$0.2700,0.38%) 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 and planned capital expenditures, 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, 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 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:
Investor Relations:
Steve Campbell (281) 847-6081
Danny Aguirre (281) 668-2657
Media Relations:
Keith Schmidt (281) 674-2650
Email:
info@newfield.com
SOURCE Newfield Exploration Company (NFX:$71.6000,$0.2700,0.38%)
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Re: NFX
Newfield Reports Second Quarter 2011 Financial and Operating Results 07/20 03:44 PM
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HOUSTON, July 20, 2011 /PRNewswire/ --Newfield Exploration Company (NFX:$71.6000,$0.2700,0.38%) today reported its unaudited second quarter 2011 financial and operating results. Newfield will be hosting a conference call at 8:30 a.m. CT on July 21, 2011. To participate in the call, dial 719-325-4774 or listen through the investor relations section of our website at http://www.newfield.com.
For the second quarter of 2011, Newfield recorded net income of $219 million, or $1.62 per diluted share (all per share amounts are on a diluted basis). Net income for the second quarter includes a net unrealized gain on commodity derivatives of $129 million ($81 million after-tax), or $0.60 per share. Without the effect of this item, net income for the second quarter of 2011 would have been $138 million, or $1.02 per share.
Revenues in the second quarter of 2011 were $621 million. Net cash provided by operating activities before changes in operating assets and liabilities was $393 million. See “Explanation and Reconciliation of Non-GAAP Financial Measures” found after the financial statements in this release.
Newfield’s production in the second quarter of 2011 was 73 Bcfe. Natural gas production in the second quarter of 2011 was 47 Bcf, an average of 517 MMcf/d. Newfield’s oil liftings and liquids production in the second quarter of 2011 were 4.4 MMBbls, or an average of approximately 48,000 BOPD. Capital expenditures in the second quarter of 2011 were approximately $630 million, excluding the Company’s $300 million acquisition in the Uinta Basin.
2011 Capital Investments, Asset Sales
Newfield reiterated its 2011 capital budget of $1.9 billion. The budget excludes capitalized interest and overhead and the May 2011 closing of the Company’s acquisition in the Uinta Basin. Year-to-date, Newfield has divested approximately $130 million in non-strategic domestic assets. The Company continues to market and sell other certain non-strategic domestic assets with total proceeds during 2011 expected to range from $200 – $300 million.
2011 Production Guidance
The sale of non-strategic assets year-to-date has reduced 2011 production by approximately 3 Bcfe. As previously disclosed, second quarter 2011 production was negatively impacted by approximately 0.2 MMBbls of deferred production due to repairs on the Abu field, located offshore Malaysia. Repairs have been completed and the field is on-line today. For the full year, Newfield expects that its production will exceed 312 Bcfe. The Company’s original production guidance was 312 – 323 Bcfe, or an increase of at least 8% over 2010 volumes. The expectation of at least 8% growth does not include adjustments for any additional sales of non-strategic assets in the second half of 2011. A table on Newfield’s production guidance for 2011 is provided within this release.
Year-to-Date 2011 Operating Highlights:
Rocky Mountains
Uinta Basin – In conjunction with the release of its second quarter earnings and operating results, the Company today provided a comprehensive update on its Uinta Basin drilling programs, including the disclosure of new oil plays available for development. Recent acquisitions have increased the Company’s acreage position to approximately 250,000 net acres. Over the coming months, the Company expects to increase its operated rig count from a historic five-rig program to at least eight rigs in 2012. As a result, oil production growth from the region is expected to increase more than 25% in 2012. A copy of the recent release and other detailed information on the Uinta Basin can be obtained through Newfield’s website.
Williston Basin –During the second quarter of 2011, Newfield completed nine new wells in the Williston Basin. The recent completions boosted net production to 8,000 BOEPD. Newfield continues to run five operated drilling rigs in the Williston Basin where the Company has approximately 150,000 net acres.
Of the recent completions, eight of the nine wells were super extended laterals and had an average lateral length of more than 9,500’. Average gross initial production (24-hour) from the nine wells completed in the second quarter was 2,100 BOEPD. The wells were drilled and completed for an average of approximately $9.8 million (gross).
Recent results include a “Company-best” – the Wiseness Federal 152-96-4-2H, which had gross initial production (24-hour average) of 5,200 BOEPD. The well has a 5,300’ lateral and was drilled and completed for approximately $5.9 million (gross).
Significant flooding, poor road conditions and road closures in the Williston Basin impacted the timing of planned operations during the second quarter. The Company has an inventory of 10 wells that have been drilled and are in various stages of completion. Newfield expects to complete a total of 13 wells in the third quarter of 2011.
Southern Alberta Basin – To date, Newfield has drilled seven vertical wells and has completed and placed on production two horizontal wells. Fracture stimulation services are in the region today executing on a program to stimulate and test multiple geologic horizons in up to four of the vertical wells. All of the wells to date have encountered oil. Newfield has approximately 320,000 net acres in the play, located in Glacier County, Montana.
Mid-Continent
Granite Wash – Newfield recently set a new record high for its Granite Wash production – 190 MMcfe/d gross (135 MMcfe/d net). This is an increase over the 110 MMcfe/d net reported at the end of the first quarter of 2011. Since early 2009, Newfield has maintained a four-rig development drilling program in the Granite Wash, with its activities primarily located in Wheeler County, Texas.
To date, the Company has completed 47 wells in the play with gross initial production averaging approximately 16 MMcfe/d (24-hour rate). The 2011 Granite Wash program is focused on the Marmaton DE and FG intervals. Year-to-date, wells in these “liquids rich” intervals have had average initial gross production of approximately 17 MMcfe/d.
Throughout 2011, the Company’s drilling personnel have continued to deliver efficiency gains. During the second quarter, Newfield drilled and cased a “best in class” well in 24 days and is averaging approximately 28 days with recent wells. Completed well costs vary by lateral length (5,000’ – 8,000’) and range from $8 – $13 million.
For 2011, the Company plans to drill more than 30 wells and grow production more than 25% over 2010. Newfield’s average working interest in the Granite Wash play is approximately 75%.
Onshore Texas
Eagle Ford Shale – Newfield continues to explore and assess its 335,000 net acre position in the Maverick Basin. Oil field services in the region today remain tight. The Company expects that it can meet its contractual drilling obligations and hold its leases by running one to two rigs in the play through the remainder of 2011. By limiting activity to this level, capital can be redirected to the Uinta Basin where the Company is adding operated rigs. We continue to assess and increase our understanding of the Eagle Ford Shale, as well as other prospective formations including the Georgetown and Pearsall.
Year-to-date, the Company has completed 13 wells in the Eagle Ford Shale, four wells in the Georgetown formation and two wells in the Pearsall Shale. Current gross production from the Maverick Basin is approximately 6,500 BOEPD. Newfield’s average working interest in the region is approximately 80%.
Recent drilling activity in the Eagle Ford has focused on the “southern” portion of the Company’s acreage. An area up to 50,000 acres is now being developed along existing infrastructure. A pilot program is underway with recent wells being drilled from pad locations to help determine optimal well spacing. The wells have been drilled in as few as seven days and gross completed well costs have averaged approximately $6.6 million. Initial 24-hour gross production rates from recent wells have ranged from 400 – 1,400 BOEPD.
The Company recently commenced production from a Pearsall Shale horizontal completion at a pipeline-restricted rate of 4.4 MMcf/d and 6,800 psi of flowing tubing pressure (gross). Newfield’s working interest in the Pearsall play averages more than 70%. A recent Georgetown completion commenced production at more than 500 BOEPD (gross). The well was drilled and completed for approximately $1.3 million (gross). Newfield’s working interest in the Georgetown is averages more than 70%.
International Oil Developments
Second quarter 2011 net liftings from the Company’s oil assets in Southeast Asia were 1.2 MMBbls, or an average of about 13,500 BOPD. The largest contributor to Newfield’s international oil production was Malaysia where net liftings during the period averaged approximately 11,200 BOPD. Second quarter 2011 production from Malaysia was negatively impacted by approximately 0.2 MMBbls due to infrastructure damage in the Abu field. Repairs were recently completed and the field has resumed production.
The Company’s production from the East Belumut facility, located at PM 323, has attained recent highs and has averaged approximately 32,000 BOPD (gross) over the last month. On PM 329, the East Piatu development is expected to commence production at about 10,000 BOPD (gross) in late 2011. Newfield has a 70% interest in East Piatu.
Deepwater Gulf of Mexico
The Company’s deepwater Gulf of Mexico production in the second quarter of 2011 was 9 Bcfe, or nearly 95 MMcfe/d. Pyrenees, located at Garden Banks 293, is expected to commence production in late 2011 at approximately 50 MMcf/d and 2,400 BCPD (gross). Outside operated developments, Axe and Dalmatian, are scheduled for first production in 2013.
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HOUSTON, July 20, 2011 /PRNewswire/ --Newfield Exploration Company (NFX:$71.6000,$0.2700,0.38%) today reported its unaudited second quarter 2011 financial and operating results. Newfield will be hosting a conference call at 8:30 a.m. CT on July 21, 2011. To participate in the call, dial 719-325-4774 or listen through the investor relations section of our website at http://www.newfield.com.
For the second quarter of 2011, Newfield recorded net income of $219 million, or $1.62 per diluted share (all per share amounts are on a diluted basis). Net income for the second quarter includes a net unrealized gain on commodity derivatives of $129 million ($81 million after-tax), or $0.60 per share. Without the effect of this item, net income for the second quarter of 2011 would have been $138 million, or $1.02 per share.
Revenues in the second quarter of 2011 were $621 million. Net cash provided by operating activities before changes in operating assets and liabilities was $393 million. See “Explanation and Reconciliation of Non-GAAP Financial Measures” found after the financial statements in this release.
Newfield’s production in the second quarter of 2011 was 73 Bcfe. Natural gas production in the second quarter of 2011 was 47 Bcf, an average of 517 MMcf/d. Newfield’s oil liftings and liquids production in the second quarter of 2011 were 4.4 MMBbls, or an average of approximately 48,000 BOPD. Capital expenditures in the second quarter of 2011 were approximately $630 million, excluding the Company’s $300 million acquisition in the Uinta Basin.
2011 Capital Investments, Asset Sales
Newfield reiterated its 2011 capital budget of $1.9 billion. The budget excludes capitalized interest and overhead and the May 2011 closing of the Company’s acquisition in the Uinta Basin. Year-to-date, Newfield has divested approximately $130 million in non-strategic domestic assets. The Company continues to market and sell other certain non-strategic domestic assets with total proceeds during 2011 expected to range from $200 – $300 million.
2011 Production Guidance
The sale of non-strategic assets year-to-date has reduced 2011 production by approximately 3 Bcfe. As previously disclosed, second quarter 2011 production was negatively impacted by approximately 0.2 MMBbls of deferred production due to repairs on the Abu field, located offshore Malaysia. Repairs have been completed and the field is on-line today. For the full year, Newfield expects that its production will exceed 312 Bcfe. The Company’s original production guidance was 312 – 323 Bcfe, or an increase of at least 8% over 2010 volumes. The expectation of at least 8% growth does not include adjustments for any additional sales of non-strategic assets in the second half of 2011. A table on Newfield’s production guidance for 2011 is provided within this release.
Year-to-Date 2011 Operating Highlights:
Rocky Mountains
Uinta Basin – In conjunction with the release of its second quarter earnings and operating results, the Company today provided a comprehensive update on its Uinta Basin drilling programs, including the disclosure of new oil plays available for development. Recent acquisitions have increased the Company’s acreage position to approximately 250,000 net acres. Over the coming months, the Company expects to increase its operated rig count from a historic five-rig program to at least eight rigs in 2012. As a result, oil production growth from the region is expected to increase more than 25% in 2012. A copy of the recent release and other detailed information on the Uinta Basin can be obtained through Newfield’s website.
Williston Basin –During the second quarter of 2011, Newfield completed nine new wells in the Williston Basin. The recent completions boosted net production to 8,000 BOEPD. Newfield continues to run five operated drilling rigs in the Williston Basin where the Company has approximately 150,000 net acres.
Of the recent completions, eight of the nine wells were super extended laterals and had an average lateral length of more than 9,500’. Average gross initial production (24-hour) from the nine wells completed in the second quarter was 2,100 BOEPD. The wells were drilled and completed for an average of approximately $9.8 million (gross).
Recent results include a “Company-best” – the Wiseness Federal 152-96-4-2H, which had gross initial production (24-hour average) of 5,200 BOEPD. The well has a 5,300’ lateral and was drilled and completed for approximately $5.9 million (gross).
Significant flooding, poor road conditions and road closures in the Williston Basin impacted the timing of planned operations during the second quarter. The Company has an inventory of 10 wells that have been drilled and are in various stages of completion. Newfield expects to complete a total of 13 wells in the third quarter of 2011.
Southern Alberta Basin – To date, Newfield has drilled seven vertical wells and has completed and placed on production two horizontal wells. Fracture stimulation services are in the region today executing on a program to stimulate and test multiple geologic horizons in up to four of the vertical wells. All of the wells to date have encountered oil. Newfield has approximately 320,000 net acres in the play, located in Glacier County, Montana.
Mid-Continent
Granite Wash – Newfield recently set a new record high for its Granite Wash production – 190 MMcfe/d gross (135 MMcfe/d net). This is an increase over the 110 MMcfe/d net reported at the end of the first quarter of 2011. Since early 2009, Newfield has maintained a four-rig development drilling program in the Granite Wash, with its activities primarily located in Wheeler County, Texas.
To date, the Company has completed 47 wells in the play with gross initial production averaging approximately 16 MMcfe/d (24-hour rate). The 2011 Granite Wash program is focused on the Marmaton DE and FG intervals. Year-to-date, wells in these “liquids rich” intervals have had average initial gross production of approximately 17 MMcfe/d.
Throughout 2011, the Company’s drilling personnel have continued to deliver efficiency gains. During the second quarter, Newfield drilled and cased a “best in class” well in 24 days and is averaging approximately 28 days with recent wells. Completed well costs vary by lateral length (5,000’ – 8,000’) and range from $8 – $13 million.
For 2011, the Company plans to drill more than 30 wells and grow production more than 25% over 2010. Newfield’s average working interest in the Granite Wash play is approximately 75%.
Onshore Texas
Eagle Ford Shale – Newfield continues to explore and assess its 335,000 net acre position in the Maverick Basin. Oil field services in the region today remain tight. The Company expects that it can meet its contractual drilling obligations and hold its leases by running one to two rigs in the play through the remainder of 2011. By limiting activity to this level, capital can be redirected to the Uinta Basin where the Company is adding operated rigs. We continue to assess and increase our understanding of the Eagle Ford Shale, as well as other prospective formations including the Georgetown and Pearsall.
Year-to-date, the Company has completed 13 wells in the Eagle Ford Shale, four wells in the Georgetown formation and two wells in the Pearsall Shale. Current gross production from the Maverick Basin is approximately 6,500 BOEPD. Newfield’s average working interest in the region is approximately 80%.
Recent drilling activity in the Eagle Ford has focused on the “southern” portion of the Company’s acreage. An area up to 50,000 acres is now being developed along existing infrastructure. A pilot program is underway with recent wells being drilled from pad locations to help determine optimal well spacing. The wells have been drilled in as few as seven days and gross completed well costs have averaged approximately $6.6 million. Initial 24-hour gross production rates from recent wells have ranged from 400 – 1,400 BOEPD.
The Company recently commenced production from a Pearsall Shale horizontal completion at a pipeline-restricted rate of 4.4 MMcf/d and 6,800 psi of flowing tubing pressure (gross). Newfield’s working interest in the Pearsall play averages more than 70%. A recent Georgetown completion commenced production at more than 500 BOEPD (gross). The well was drilled and completed for approximately $1.3 million (gross). Newfield’s working interest in the Georgetown is averages more than 70%.
International Oil Developments
Second quarter 2011 net liftings from the Company’s oil assets in Southeast Asia were 1.2 MMBbls, or an average of about 13,500 BOPD. The largest contributor to Newfield’s international oil production was Malaysia where net liftings during the period averaged approximately 11,200 BOPD. Second quarter 2011 production from Malaysia was negatively impacted by approximately 0.2 MMBbls due to infrastructure damage in the Abu field. Repairs were recently completed and the field has resumed production.
The Company’s production from the East Belumut facility, located at PM 323, has attained recent highs and has averaged approximately 32,000 BOPD (gross) over the last month. On PM 329, the East Piatu development is expected to commence production at about 10,000 BOPD (gross) in late 2011. Newfield has a 70% interest in East Piatu.
Deepwater Gulf of Mexico
The Company’s deepwater Gulf of Mexico production in the second quarter of 2011 was 9 Bcfe, or nearly 95 MMcfe/d. Pyrenees, located at Garden Banks 293, is expected to commence production in late 2011 at approximately 50 MMcf/d and 2,400 BCPD (gross). Outside operated developments, Axe and Dalmatian, are scheduled for first production in 2013.
