Newfield Exploration Co. has established a new Rocky Mountain focus with the completion of its $574 million acquisition of Inland Resources, a privately held Denver-based producer. The transaction gives Newfield an internally estimated 326 Bcfe of proved reserves and 439 Bcfe of probable reserves.

Inland’s major asset is the 110,000-acre Monument Butte Field, located in the Uinta Basin of northeast Utah. Inland operates the field and has an average working interest of about 80%. Newfield estimates that the giant Monument Butte Field has more than 2 billion boe in place. With the acquisition, Newfield estimates its proved reserves now are 1.7 Tcfe, of which 77% are proved developed and 70% are natural gas. The transaction lengthens Newfield’s reserve life by near 20% to seven years.

Inland’s reserves are estimated at 85% oil and are 70% proved undeveloped. Current net production is approximately 7,000 boe/d, and Newfield expects to double production by the end of 2006. Production is expected to be 10,500 boe/d in 2005 and 14,000 boe/d in 2006. Three rigs are currently drilling in the field.

The purchase price was funded through recent concurrent offerings of Newfield common stock and debt. Newfield issued 5.4 million shares at a price to the public of $52.85/share and $325 million of 6 5/8% senior subordinated notes due Sept.1, 2014.

In conjunction with the acquisition, Newfield hedged a significant portion of the expected production from 2005 through 2010. A complete listing of all the hedges can be found on Newfield’s web site at

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