Newfield Sells Assets in Oklahoma's Cherokee Basin for $128 Million



Newfield Exploration has entered into a purchase and sale agreement to sell all of its coal bed methane assets in the Cherokee Basin of northeastern Oklahoma to Constellation Energy Partners for $128 million. The sale is expected to close in the third quarter of 2007.

Current net production is approximately 10 MMcf/d. The transaction includes the sale of more than 650 producing wells, Newfield's interests in approximately 80,000 net acres and a gas gathering system. Newfield entered this region in 2004 through the purchase of assets from two private companies.

Newfield's production guidance (issued July 25) accounted for this and other anticipated divestitures and remains 240 - 253 Bcfe in 2007 and 215 - 230 Bcfe in 2008.

The Company's previously announced divestiture packages include its Gulf of Mexico shelf assets (expected to close in early August), its assets in the U.K. North Sea and Bohai Bay, China, and other select properties in Texas and the Mid-Continent. Proceeds from these sales will be used to pay down debt and fund capital expenditures.

Natural Gas Hedging Update: Taking advantage of the recent moves in natural gas futures, Newfield has added additional hedges since the Company's last update on July 25. Newfield added fixed positions for April 2008 - October 2008 of 60 MMcf/d at an average of $8.22 per Mcf. Approximately 45% of the Company's expected production for this period is now hedged.

RELATED COMPANIES