Newfield Provides Exploration Update
Newfield Exploration Company announced three significant exploration discoveries. Two of the wells are located in the Gulf of Mexico, Newfield's largest focus area, and one is located in China's Bohai Bay.
West Cameron 294 #5 -- The WC 294 #5 wildcat well is a discovery. Well logs indicate that more than 100' of pay has been encountered to date. Casing is being run on the interval and drilling operations will resume to test deeper objectives in the wellbore. Newfield is the operator of the recent discovery with an 85% working interest. Another prospect may be drilled near this discovery in 2002.
Newfield recently increased its interest and became operator of the two successful wells drilled in the WC 294 Field in early 2001. This is the Company's first successful field development in an emerging trend commonly called the "deep shelf." The field is currently producing 35 million cubic feet per day and 300 BCPD (gross).
Eugene Island 251 #5 -- A successful exploration well was recently drilled at EI 251, offsetting one of Newfield's largest producing fields in the Gulf of Mexico. The EI 251 #5 well encountered more than 120' of net gas pay in two sands. Planning for the fabrication of a jacket and deck is now underway with first production expected in mid-2002. The well's success sets up a separate location that will be drilled from the new production platform in 2002. Newfield is the operator of the development with a 57% working interest. Eugene Island 251 is located 75 miles offshore Louisiana in about 160 feet of water.
Newfield has operated the Eugene Island 251 field since acquiring the property in 1994. In 1994, the Company drilled five wells in the field. The five wells have cumulative production of more than 100 Bcf and nearly 2 million barrels of condensate.
CFD 12-1 South #1, Bohai Bay -- A successful exploratory well was recently drilled 5.3 kilometers south of the Company's CFD 12-1 Field discovery well, located on Block 05/36 in China's Bohai Bay. The CFD 12-1 South #1 well encountered significant oil pay in three zones in the Dongying formation. Under natural flow, the well tested more than 5,000 barrels per day of 39-degree API gravity oil. Testing operations on additional zones continue. Following testing, the rig will move to drill an appraisal well on this discovery. The CFD 12-1 South #2 appraisal well will be drilled 1.5 kilometers southwest of the CFD 12-1 South #1 well. Results from the appraisal well are expected in December. Newfield owns a 35% interest in Block 05/36, which is operated by Kerr-McGee.