Newfield raises 2008 production estimate again

Newfield Exploration Co. has raised its 2008 production guidance for the second time this year.

By OGJ editors
HOUSTON, June 23 -- Newfield Exploration Co. has raised its 2008 production guidance for the second time this year.

East Belumut-Chermingat fields off Malaysia have started production, and Puteri field is about to start production, said Newfield (OGJ, Mar. 3, 2008, p. 32).

Newfield expects 2008 production to be 232-239 bcf of gas equivalent, a 22-26% increase over 2007 (adjusted for asset sales and acquisitions). Newfield's previous estimate was 224-234 bcf of gas equivalent.

David Trice, Newfield chairman, president, and chief executive officer, said the Houston independent also is experiencing rapid growth in the US, particularly in the Woodford Shale and Monument Butte assets.

"Growth in these areas is fueled largely through strong cash flows from our Gulf Coast and international assets," Trice said.

Separately, Newfield announced the signing of a new production-sharing contract in shallow water Malaysia on license area SK 310.

SK 310 covers nearly 1.2 million acres in about 300 ft of water off Sarawak. Newfield operates SK 310 and owns 30% interest.

Newfield and its partners agreed to shoot 500 sq km of 3D seismic data and to drill three exploration wells. Seismic surveys are expected this year, and drilling could begin in late 2009 or early 2010.

Other partners are Mitsubishi Corp. 30% interest and Petronas 40% interest.

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