The purchase price was funded through recent concurrent offerings of Newfield common stock and debt. Newfield issued 5.4 million shares at a price to the public of $52.85 per share and $325 million of 6 5/8% senior subordinated notes due September 1, 2014.
Inland Resources is a privately held company based in Denver, Colorado. Inland's major asset is the 110,000-acre Monument Butte Field, located in the Uinta Basin of Northeast Utah. Inland operates the Monument Butte Field and has an average working interest of about 80%. Newfield estimates that the giant Monument Butte Field has oil in place of more than two billion barrels. Through this transaction, Newfield acquired an internally estimated 326 billion cubic feet equivalent (Bcfe) of proved reserves and 439 Bcfe of probable reserves. The reserves are 85% oil and are 70% proved undeveloped. Current net production is approximately 7,000 barrels of oil equivalent per day (BOEPD). Newfield expects to double production by the end of 2006. Production is expected to be 10,500 BOEPD in 2005 and 14,000 BOEPD in 2006. Three rigs are currently drilling in the field.
Newfield's proved reserves are now approximately 1.7 trillion cubic feet equivalent (Tcfe), of which 77% are proved developed and 70% are natural gas. The transaction lengthens Newfield's reserve life by nearly 20% to approximately seven years.
Most Popular Articles
From the Career Center
Jobs that may interest you