Newfield Exploration Company announced that the East Belumut/Chermingat fields in PM 323 recently commenced production and the Puteri field in PM 318 is expected to commence production later this week. The East Belumut/Chermingat and Puteri fields are located offshore Malaysia.
In conjunction with the start-up of production from these fields, Newfield raised its 2008 production guidance for the second time this year. Newfield now expects that 2008 production will be 232-239 Bcfe, a 22-26% increase over 2007 (adjusted for asset sales and acquisitions). The Company's most recent guidance was 224-234 Bcfe. Newfield expects that its second quarter 2008 production will be approximately 57 Bcfe, or 2 Bcfe ahead of the mid-point of its earlier guidance.
"Our 2008 organic production growth is strong and reflects the quality of our assets and the execution of our business plan," said David Trice, Chairman, President and CEO. "Our Woodford Shale and Monument Butte assets are growing at rates ahead of our earlier projections. Growth in these areas is fueled largely through strong cash flows from our Gulf Coast and international assets. We believe that our portfolio of assets presents visible production growth for the next several years."
Newfield also announced the signing of a new production sharing contract in shallow water Malaysia on license area SK 310. SK 310 covers nearly 1.2 million acres and is located in about 300' of water offshore Sarawak. Newfield and its partners have committed to shoot 500 square kilometers of new 3-D seismic data and to drill three exploration wells. Seismic acquisition is expected to commence later this year and drilling could begin in late 2009 or early 2010. Newfield is the operator of SK 310 with a 30% interest. Other partners include Mitsubishi Corporation (30% interest) and Petronas Carigali Sdn. Bhd. (40% interest), the exploration and production subsidiary of Malaysia's state-owned Petroliam Nasional Berhad.
Newfield entered Malaysia in 2004 and now has PSCs covering three shallow water blocks and one deepwater block. The PSCs total a combined 2.9 million acres.