Acquisition Resources

Newfield Exploration Company has announced the signing of a purchase and sale agreement to sell all of its interests in the UK North Sea to Centrica plc, the owner of British Gas, for $486.4 million. The sale, which is subject to UK government approvals, is expected to close in the fourth quarter of 2007. This marks a complete exit by the Company from the North Sea.

The sale includes an 85% interest in the Grove Field, an 80% interest in the undeveloped Seven Seas discovery and an interest in approximately 200,000 net acres located in the Southern Gas Basin. The Grove Field commenced production in April 2007.

Newfield's production guidance (issued July 25) accounted for this sale and other anticipated divestitures and remains 240 - 253 Bcfe in 2007 and 215 - 230 Bcfe in 2008.

Jefferies Randall & Dewey acted as financial advisor for Newfield in this transaction.

Newfield Exploration Company is an independent crude oil and natural gas exploration and production company. The Company relies on a proven strategy of growing reserves through the drilling of a balanced risk/reward portfolio and select acquisitions. Newfield's domestic areas of operation include the onshore Gulf Coast, the Anadarko and Arkoma Basins of the Mid-Continent, the Rocky Mountains and the Gulf of Mexico. The Company has international operations in Malaysia and China.