Newfield to Sell its Granite Wash Assets for $588 million

Source: 7/29/2014, Location: North America

Newfield Exploration Company announced the signing of a $588 million purchase and sale agreement for its Granite Wash assets to Oklahoma City-based Templar Energy LLC (operating through Le Norman Operating LLC). The sale will have an effective date of July 1, 2014, and is expected to close in the third quarter of 2014.

Newfield's assets in the Granite Wash include approximately 42,000 net acres and current net daily production is nearly 65 MMcfe/d, of which approximately 60% is natural gas. Proved net reserves at year-end 2013 were approximately 38 MMBOE. Newfield intends to use the proceeds from this sale to call its 71/8% Senior Subordinated Notes due in 2018.

"Today's announcement is consistent with the underlying objectives in our three-year plan," said Larry Massaro, Newfield Executive Vice President and CFO. "Today's sale further demonstrates our willingness to monetize non-strategic assets, high-grade our portfolio, accelerate our domestic growth programs and strengthen our balance sheet. Our future investments will be in high-return, scalable resource plays where we can drive value through repeatable application of our core competencies in drilling and completions."

J.P. Morgan Securities and Wells Fargo Securities acted as Newfield's financial advisors on this transaction. Newfield also disclosed that the Company is now completing its planned repairs to its Pearl facility (jacket), located in the South China Sea. The topsides, located near Hong Kong, were recently loaded on a barge and installation remains on schedule, pending weather conditions over the next month. First oil is expected in the fourth quarter of 2014 with gross facility capacity of 40,000 BOPD gross. The Company intends to monetize its business in China.

Newfield Exploration Company is an independent energy company engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. We are focused on North American resource plays and our principal areas of operation include the Mid-Continent, the Rocky Mountains and onshore Texas.

Related Categories: Coalbed Methane  General  Heavy Oil  Methane Clathrate  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 

Related Articles: Coalbed Methane  General  Heavy Oil  Methane Clathrate  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 

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