Newfield acquires Gulf of Mexico assets

Houston-based independent Newfield Exploration Co. said it will acquire all of the outstanding stock of Denbury Offshore Inc., a unit of Denbury Resources Inc., Dallas, for about $187 million, including about $5 million in working capital.

July 23, 2004

By OGJ editors

HOUSTON, July 23 -- Houston-based independent Newfield Exploration Co. said it will acquire all of the outstanding stock of Denbury Offshore Inc., a unit of Denbury Resources Inc., Dallas, for about $187 million, including about $5 million in working capital. Denbury's offshore unit holds all of the parent firm's Gulf of Mexico assets.

The acquired assets include operatorship and high working interests in several mature, giant fields, Newfield said. The transaction adds about 50 MMcfed of net natural gas production to Newfield's portfolio. Of this production, 97% is gas, it said.

Newfield will acquire 38 blocks in the gulf, of which 32 are company-operated. On these blocks lie 16 total fields, 7 of which hold 90% of the reserves and produce 95% of total production.