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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): AUGUST 24, 1998
NEWFIELD EXPLORATION COMPANY
(Exact name of registrant as specified in its charter)
Delaware 1-12534 72-1133047
(State or other jurisdiction (Commission file (I.R.S. employer
of incorporation or organization) number) identification number)
363 N. Sam Houston Parkway E.
Suite 2020
Houston, Texas 77060
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (281) 847-6000
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Item 5. Other Events
See the following press release by Newfield Exploration Company
announcing the acquisition of interests in nine oil and gas fields and
the increase of the Company's revolving credit facility to $225 million.
NEWFIELD COMPLETES GULF OF MEXICO ACQUISITION
FOR IMMEDIATE RELEASE
Houston, Texas (August 24, 1998) - NEWFIELD EXPLORATION COMPANY (NYSE-NFX)
today announced it has purchased interests in nine oil and gas fields,
comprised of interests in 13 offshore blocks, in the South Marsh Island, West
Cameron and High Island areas of the Gulf of Mexico, offshore Louisiana and
Texas, for approximately $60 million from an undisclosed seller. The newly
acquired fields are in proximity to Newfield's existing acreage position and
enhance the Company's operating presence in the Western Gulf of Mexico.
Newfield will operate all of the acquired properties and own working interests
ranging from 45% to 100%. Of the nine fields acquired, six are developed and
producing and three will be placed on line during the third and fourth
quarters of 1998. Because most of these fields are subject to a pre-existing
volumetric production payment, their contribution to 1998 production volumes
will not be significant. The average net daily production contribution in
1999 is, however, expected to be approximately 30 MMcfe, or in excess of 10%
of Newfield's total current net production. All of the acquired reserves are
natural gas. Newfield has hedged approximately one-third of estimated natural
gas production from the acquired properties under fixed price contracts at
average prices ranging from $2.30 to $2.35 per MMBtu for calendar years 1999
and 2000.
Newfield has identified several drilling opportunities that include proved,
probable and possible reserve targets and intends to initiate drilling on at
least two of those prospects during 1998.
The acquisition was funded with borrowings under the Company's revolving
credit facility, which has been increased to a $225 million facility. The
additional bank credit capacity may be used for general corporate and working
capital purposes including the acquisition, exploration and development of oil
and gas properties. Chase Bank of Texas, National Association, serves as
agent for the facility.
Newfield Exploration Company was founded in 1989. Its principal operations
are in the Gulf of Mexico and Gulf Coast area. In early 1998, Newfield was
the 11th leading operator of production and in 1997, it was the 9th most
active driller in the Gulf of Mexico.
Newfield Exploration Company For more information contact:
363 N. Sam Houston Parkway East, Ste. 2020 James P. Ulm, II
Houston, TX 77060 (281) 847-6000
(www.newfld.com)
Certain of the statements set forth in this press release regarding production
targets and planned capital expenditures and activities are forward looking
and are based upon assumptions and anticipated results that are subject to
numerous uncertainties. Actual results may vary significantly from those
anticipated due to many factors, including drilling results, oil and gas
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prices, industry conditions, the prices of goods and services, the
availability of drilling rigs and other support services and the availability
of capital resources. In addition, the drilling of oil and gas wells and the
production of hydrocarbons are subject to governmental regulations and
operating risks.
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Item 7. Financial Statements and Exhibits
(a) Financial statements of businesses acquired:
None
(b) Proforma financial information:
None
(c) Exhibits:
10.1 First Amendment to Amended and Restated Credit Agreement
dated as of August 20, 1998 among Newfield Exploration
Company as the Company, and The Chase Manhattan Bank as
Agent, and the Banks signatory thereto (without Exhibits)
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this Form 8-K to be signed on its behalf by the
undersigned thereunto duly authorized.
NEWFIELD EXPLORATION COMPANY
Date: August 28, 1998 By: /s/ Terry W. Rathert
Terry W. Rathert
Vice President-Planning and
Administration and Secretary
(Authorized Officer and Principal
Financial Officer)
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EXHIBIT INDEX
Exhibit
Number Description of Exhibits
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10.1 First Amendment to Amended and Restated Credit Agreement
dated as of August 20, 1998 among Newfield Exploration
Company as the Company, and The Chase Manhattan Bank as
Agent, and the Banks signatory thereto (without Exhibits)