Newfield Exploration Company - Gulf of Mexico
Percent of 2008 Total Company Reserves: 5%
Percent of 2009e Total Company Production: 9%
Percent of 2009 Capital Budget: 18%
Location: Headquarters in Houston, Texas, with focus
of operations in deepwater development and select shallow water
properties.
Focus: Large inventory of deepwater prospects, which have a 10-year term. Current deepwater field developments are expected to grow production in 2009-2012.
Links:
GOM Leasehold Map
The Pyrenees Area
Although Newfield’s roots were in the shallow waters of the Gulf of Mexico, the Company has diversified its asset base over the last decade. Today, Newfield retains a select exploration-focused initiative on the shelf and a balanced program of exploration and development drilling in the deepwater. As of June 2009, the Company owned interests in 88 deepwater blocks (approximately 500,000 gross acres). Newfield plans to drill 3-5 deepwater Gulf of Mexico wells each year over the next several years.
The Company has seven deepwater developments underway, providing significant future production growth. These include the recent discoveries: Pyrenees and Winter that were announced in June 2009.
Pyrenees was a significant discovery, which has additional upside potential in deeper objectives. This discovery, located in approximately 2,100' of water in Garden Banks Block 293, encountered approximately 125' of net hydrocarbon pay in three separate intervals. The well was temporarily abandoned and the partners are working on field development plans. A sidetrack well was drilled in August 2009 to help confirm the three proven pay sands and provide geologic information for the field's development. Newfield operates the development with a 40% working interest. Newfield has a contiguous 11-block area around Pyrenees that includes other prospects: Mastiff and Saluki. Further drilling is expected in 2010-11.
Winter, located in approximately 3,400' of water in Garden Banks Block 605, encountered approximately 44' of net hydrocarbon pay in two sands. Development is underway with first production expected in 2010-11. Newfield is operator and has a 30% working interest.
Other significant deepwater developments underway that will provide significant production growth in 2010-12 include:
Fastball: LLocated at Viosca Knoll 1003, this single-well development will be a sub-sea tieback to existing infrastructure with first production expected in October 2009. Newfield operates Fastball with a 66% working interest.
Dalmatian: In the fourth quarter of 2008, Newfield and its partners made a significant deepwater discovery at the Dalmatian prospect, located at Desoto Canyon Block 48. The well found more than 120' of net high quality dry gas pay. The discovery will be developed via a sub-sea tie back to existing infrastructure. We have a 37.5% working interest in this outside operated development. First production is expected in late 2010.
Gladden: Located at Mississippi Canyon 800, the discovery well MC 800 #1 tested approximately 5,600 BOEPD (gross). First production is expected in late 2010. Newfield operates with a 47.5% working interest.
Anduin West: Located at Mississippi Canyon 754, the discovery tested 32 MMcfe/d. Newfield expects first production in late 2010.
Sargent: Located at Garden Banks 339, Sargent was drilled and completed. Newfield operates with a 25% interest. Development plans are for a single well tie back to existing infrastructure with first production in 2010.
Our 2009 production from the GOM is expected to increase about 60% over 2008 levels