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ExxonMobil, Newfield cut deal to explore
ExxonMobil and independent producer Newfield Exploration have agreed to jointly explore and develop about 52,000 acres controlled by the major in South Texas, Newfield said Oct. 10.
Newfield said that over the next three years it expects two or three drilling rigs would be put to work on the ExxonMobil properties, located in Kenedy, Starr and Hidalgo counties, all of which are in Newfield’s South Texas core area.
Production from the three South Texas counties already has accounted for a significant portion of Newfield’s onshore growth, the company said, adding that since Newfield entered the region in 2000 its net daily production has increased to more than 200 million cubic feet of gas equivalent.
In addition to the acreage covered under the new venture, Newfield owns interests in more than 200,000 acres in South Texas, gained largely through property acquisitions. Some Gulf gas production restored Meanwhile, Newfield said it had restored 60 million of 320 million cubic feet of gas equivalent production in the Gulf since Hurricane Rita passed through the region several weeks ago. However, the company noted that daily production amounting to only 14 million cubic feet of gas equivalent resulted from lost platforms or structures due to the storm. The remainder was attributed to host platforms, pipelines and onshore processing facilities.
Newfield said it expects up to 220 million cubic feet of its daily shut-in gas production to resume within the next month, depending on the condition of pipelines and other facilities.
“The storms of 2005 dealt a severe blow to Gulf of Mexico infrastructure,” said David Trice, Newfield’s chief executive officer. “A reduced and damaged rig fleet will create challenges for all of us as we move forward.”
—Ray Tyson
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