Newfield, ExxonMobil Sign JV to Explore, Develop in South Texas

Newfield Exploration Company announced the signing of an agreement with ExxonMobil to jointly explore and develop approximately 87,000 gross acres in South Texas, targeting the prolific Vicksburg Trend. Newfield expects an active drilling program in the area over the next three years.

The agreement covers properties in Kenedy, Brooks and Hidalgo Counties and complements Newfield's existing activity areas. Newfield's working interest in the venture is approximately 50%. Expenditures associated with the 2008 drilling program on these properties were previously included in Newfield's capital budget.

"We are excited about signing the agreement with ExxonMobil to explore and develop new fields in one of the most productive areas in South Texas," said David A. Trice, Chairman, President and CEO. "Our technical teams have already identified prospects and have an inventory of locations for us to test over the next several years. We're confident in our ability to add new reserves and production in 2008 and beyond."

Newfield has been active in South Texas since 2000. Current net production from the region is approximately 230 MMcfe/d. Newfield owns interests in approximately 482,000 gross lease acres in South Texas.