Newfield Says Treasure Island Test Well to be Drilled

Newfield Exploration Company has received notice from BP Exploration & Production Inc. of its intent to drill an initial well to test the Treasure Island exploration concept, as provided for and subject to the terms and conditions of the joint exploration agreement between BP and Newfield (as successor to EEX Corp.)

The agreement between Newfield and BP provides that if BP does not commence drilling of the initial well by January 1, 2004, then the agreement will terminate and the interests in the 20 leases assigned to BP under the agreement will be reassigned to Newfield for nominal consideration. BP and Newfield are conducting further technical work to refine plans for the area.

Treasure Island refers to a concept developed to explore for oil and gas in ultra-deep horizons below a salt weld typically found at 18,000', but sometimes as deep as 22,200', in the Shelf of the Gulf of Mexico. The Treasure Island area covers horizons below specified depths in 116 lease blocks located offshore Louisiana.