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Newfield Exploration Issues Mid-Year Operational Update

Stocks in this article: NFX

Newfield's oil and liquids liftings in the second quarter of 2012 were 6.1 MMBbls (67,000 BOPD) and comprised 49% of total Company production. Approximately 4% of Newfield's second quarter production was NGLs. Second quarter 2012 oil/liquids volumes were 40% higher than in the comparable period of 2011. Natural gas production in the second quarter of 2012 was approximately 40 Bcf, or an average of approximately 440 MMcf/d.  On an equivalent basis, Newfield's production in the second quarter of 2012 was 76.4 Bcfe.

For the second time this year, Newfield raised its 2012 expectations for total Company production to 296 – 304 Bcfe (previous guidance was 292 – 302 Bcfe). With increasing activities planned in key oil regions in late 2012 and ongoing leasing in the Cana Woodford, Newfield expects that its capital investments in 2012 will approximate $1.7 billion, or the "upper end" of its original guidance range of $1.5$1.7 billion.

Assessment Plays Benefitting from "Controlled Flowback"

In all of Newfield's wet gas condensate and oil assessment plays, the Company is employing "controlled flowback" in its completion practices. This includes recent horizontal well results disclosed in this news release from the Cana Woodford, Uinta Basin, Eagle Ford Shale and Williston Basin. Through this practice, initial production rates are being intentionally held back to minimize pressure drawdown, maintain higher reservoir pressure and maximize oil recovery over time.

Cana Woodford

In late 2010, Newfield began to aggressively lease acreage in the Cana Woodford play in the Anadarko Basin of Oklahoma. At the time, these leases were south and east of the majority of industry activity. Today, more than 45 industry rigs are running in this play. Newfield now has more than 135,000 net acres in the play, up from 125,000 net acres in early 2012. The Company ran an average of five operated rigs in the first half of 2012 and, with continued strong results, plans to further increase activity levels in 2013.

Newfield is very encouraged with its results in the play to date. Today's drilling campaign is focused on the "South Cana" – an area prone to high oil and liquids yields that encompasses about 80,000 net acres. Recent notable wells from the Company's South Cana drilling program include:

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