Newfield Closes Sale of CBM Assets
Newfield Exploration has provided an update regarding its producing property sales. Year-to-date, Newfield has entered into transactions to sell or has closed on sales for aggregate proceeds of more than $1.8 billion.
Newfield today announced the signing of two separate purchase and sale agreements with undisclosed private companies providing for the sale of additional producing properties in the Mid-Continent. The combined proceeds from the transactions are expected to be in excess of $56 million. The transactions are expected to close in the fourth quarter of 2007. Current net daily production associated with the properties is approximately 5 MMcfe/d. The properties are primarily located in Hemphill, Wheeler and Gray Counties, Texas and Dewey and Custer Counties, Oklahoma. Combined, the sales include approximately 13,550 net acres.
On September 21, Newfield closed on the sale of its coal bed methane assets in the Cherokee Basin of northeastern Oklahoma for $128 million.
Newfield has closed, or is in the process of closing, on the sale of 25 fields in Texas for approximately $32 million. Net daily production from these fields is approximately 4.5 MMcfe.
The following table summarizes the transactions announced to date: REGION DESCRIPTION PROCEEDS STATUS (in millions) Gulf of Mexico GOM Shelf Assets $1,100 Closed 8/6/07 Mid-Continent Cherokee Basin CBM Assets $128 Closed 9/21/07 Other producing Expected assets $56 close: 10/07 Onshore Texas 25 fields throughout 18 fields closed; Texas $32 remainder to close 4Q07 North Sea Sale of entire Expected close: North Sea business $486 10/07 TOTAL $1,802
In addition to the transactions above, Newfield continues to market its producing assets in Bohai Bay, China.
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