Newfield Prices Senior Subordinated Notes Due 2014

Newfield Exploration Company (NYSE: NFX) has priced at par a private offering of $325 million of senior subordinated notes due September 1, 2014, which will carry an annual interest rate of 6 5/8%. The senior subordinated notes being sold by Newfield will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The senior subordinated notes will be eligible for trading under Rule 144A.

Closing of the senior subordinated notes offering is expected to occur on August 18, 2004, and is subject to satisfaction of customary closing conditions. Newfield intends to use the net proceeds of the offering to partially fund its recently announced and pending acquisition of Inland Resources Inc.

This announcement shall not constitute an offer to sell or a solicitation of an offer to buy.

Newfield Exploration Company is an independent crude oil and natural gas exploration and production company. The Company relies on a proven growth strategy that includes balancing acquisitions with drill bit opportunities. Newfield's areas of operation include the Gulf of Mexico, the U.S. onshore Gulf Coast, the Anadarko and Arkoma Basins and select international ventures.