Nuevo Energy Company has closed on the sale of the Orcutt Hill Field and several surface tracts for $12.9 million effective July 1, 2003. The Orcutt Hill Field represented the last onshore California oil field Nuevo owned outside of the San Joaquin Basin. Average net production from this field was approximately 1,235 barrels per day, 2% of Nuevo's total production. This asset was included in assets held for sale at fair value as of June 30, 2003. The remaining assets held for sale include real estate in Orcutt and Brea, California, which Nuevo is actively marketing. The Company's goal is to conclude additional asset sales by year-end.
Operating cash flow combined with the previously announced monetization of $69.5 million of non-core assets has enabled Nuevo to achieve a net debt reduction of $122 million in the first half of 2003. Proceeds from this sale will be used to eliminate a portion of bank debt which had a balance outstanding of $66.2 million on June 30, 2003.