Newfield Exploration Company signed two separate agreements to acquire assets in the Uinta Basin from Harvest Natural Resources and an unnamed private company for an aggregate $308 million. The transactions will add approximately 70,000 net acres to the company’s acreage position in the Uinta Basin. The acreage is largely undeveloped and located adjacent and north of the company’s largest oil asset – the Monument Butte field. Newfield said last month it expects the Monument Butte field to grow more than 15% this year and domestic oil volumes to rise by about half. Harvest Natural will receive $215 million for the Antelope project which consists of approximately 69,000 gross acres (47,600 net acres). Harvest owned a working interest of approximately 70% in the Uinta assets.
Newfield Exploration 2011 strategy moves to oil plays!!
At the end of last year, Newfield agreed with EOG Resources to acquire gas rich Marcellus assets. However, it was subsequently cancelled for mysterious reasons. Now it becomes clear with their 2011 strategy…
Nearly 60% of Newfield's 2010 investment was focused on oil and "liquids rich" gas assets within the company's portfolio. However, Newfield’s 2011 budget of approximately $1.7 billion will be spent 100% on oil/liquids rich gas plays.